IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v72y2021ics0957178721000813.html
   My bibliography  Save this article

Optimal policies for electromobility: Joint assessment of transport and electricity distribution costs in Norway

Author

Listed:
  • Wangsness, Paal Brevik
  • Proost, Stef
  • Rødseth, Kenneth Løvold

Abstract

This paper develops a stylized economic model for passenger transport in the greater Oslo area, in which the agents' choices of car ownership, transport pattern, and electric vehicle (EV) charging are jointly determined. If enough EVs charge during peak hours, costly grid expansions may be needed. We examine how the distribution system operators can mitigate these costs with different pricing schemes and how this, in turn, affects the transport market equilibrium. We find that applying tariffs differentiated between peak and off-peak periods will help strike a better balance between grid investment costs and EV-owners’ disutility of charging during off-peak hours.

Suggested Citation

  • Wangsness, Paal Brevik & Proost, Stef & Rødseth, Kenneth Løvold, 2021. "Optimal policies for electromobility: Joint assessment of transport and electricity distribution costs in Norway," Utilities Policy, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:juipol:v:72:y:2021:i:c:s0957178721000813
    DOI: 10.1016/j.jup.2021.101247
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957178721000813
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jup.2021.101247?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. David P. Brown & David E. M. Sappington, 2017. "Optimal policies to promote efficient distributed generation of electricity," Journal of Regulatory Economics, Springer, vol. 52(2), pages 159-188, October.
    2. Paal Brevik Wangsness and Askill Harkjerr Halse, 2021. "The Impact of Electric Vehicle Density on Local Grid Costs: Empirical Evidence from Norway," The Energy Journal, International Association for Energy Economics, vol. 0(Number 5).
    3. Brown, David P. & Sappington, David E.M., 2018. "On the role of maximum demand charges in the presence of distributed generation resources," Energy Economics, Elsevier, vol. 69(C), pages 237-249.
    4. Dora L. Costa & Matthew E. Kahn, 2013. "Energy Conservation “Nudges” And Environmentalist Ideology: Evidence From A Randomized Residential Electricity Field Experiment," Journal of the European Economic Association, European Economic Association, vol. 11(3), pages 680-702, June.
    5. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1993. "A Structural Model of Peak-Period Congestion: A Traffic Bottleneck with Elastic Demand," American Economic Review, American Economic Association, vol. 83(1), pages 161-179, March.
    6. Parsons, George R. & Hidrue, Michael K. & Kempton, Willett & Gardner, Meryl P., 2014. "Willingness to pay for vehicle-to-grid (V2G) electric vehicles and their contract terms," Energy Economics, Elsevier, vol. 42(C), pages 313-324.
    7. Daina, Nicolò & Sivakumar, Aruna & Polak, John W., 2017. "Modelling electric vehicles use: a survey on the methods," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 447-460.
    8. Börjesson, Maria & Fung, Chau Man & Proost, Stef, 2017. "Optimal prices and frequencies for buses in Stockholm," Economics of Transportation, Elsevier, vol. 9(C), pages 20-36.
    9. Graabak, Ingeborg & Wu, Qiuwei & Warland, Leif & Liu, Zhaoxi, 2016. "Optimal planning of the Nordic transmission system with 100% electric vehicle penetration of passenger cars by 2050," Energy, Elsevier, vol. 107(C), pages 648-660.
    10. Mwasilu, Francis & Justo, Jackson John & Kim, Eun-Kyung & Do, Ton Duc & Jung, Jin-Woo, 2014. "Electric vehicles and smart grid interaction: A review on vehicle to grid and renewable energy sources integration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 34(C), pages 501-516.
    11. Fang, Yingkai & Asche, Frank & Novan, Kevin, 2018. "The costs of charging Plug-in Electric Vehicles (PEVs): Within day variation in emissions and electricity prices," Energy Economics, Elsevier, vol. 69(C), pages 196-203.
    12. Azadfar, Elham & Sreeram, Victor & Harries, David, 2015. "The investigation of the major factors influencing plug-in electric vehicle driving patterns and charging behaviour," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 1065-1076.
    13. David P. Brown & David E. M. Sappington, 2017. "Designing Compensation for Distributed Solar Generation: Is Net Metering Ever Optimal?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    14. Barton, John & Huang, Sikai & Infield, David & Leach, Matthew & Ogunkunle, Damiete & Torriti, Jacopo & Thomson, Murray, 2013. "The evolution of electricity demand and the role for demand side participation, in buildings and transport," Energy Policy, Elsevier, vol. 52(C), pages 85-102.
    15. Neaimeh, Myriam & Wardle, Robin & Jenkins, Andrew M. & Yi, Jialiang & Hill, Graeme & Lyons, Padraig F. & Hübner, Yvonne & Blythe, Phil T. & Taylor, Phil C., 2015. "A probabilistic approach to combining smart meter and electric vehicle charging data to investigate distribution network impacts," Applied Energy, Elsevier, vol. 157(C), pages 688-698.
    16. Noel, Lance & Papu Carrone, Andrea & Jensen, Anders Fjendbo & Zarazua de Rubens, Gerardo & Kester, Johannes & Sovacool, Benjamin K., 2019. "Willingness to pay for electric vehicles and vehicle-to-grid applications: A Nordic choice experiment," Energy Economics, Elsevier, vol. 78(C), pages 525-534.
    17. Green II, Robert C. & Wang, Lingfeng & Alam, Mansoor, 2011. "The impact of plug-in hybrid electric vehicles on distribution networks: A review and outlook," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(1), pages 544-553, January.
    18. Stef Proost & Mads Greaker & Cathrine Hagem, 2019. "Vehicle-to-Grid. Impacts on the electricity market and consumer cost of electric vehicles," Discussion Papers 903, Statistics Norway, Research Department.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nathasit Gerdsri & Komkrit Sivara & Chayoot Chatunawarat & Somnuek Jaroonjitsathian & Krissada Tundulyasaree, 2022. "Roadmap for Future Mobility Development Supporting Bangkok Urban Living in 2030," Sustainability, MDPI, vol. 14(15), pages 1-19, July.
    2. Roman Chinoracky & Natalia Stalmasekova & Tatiana Corejova, 2022. "Trends in the Field of Electromobility—From the Perspective of Market Characteristics and Value-Added Services: Literature Review," Energies, MDPI, vol. 15(17), pages 1-19, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hoarau, Quentin & Perez, Yannick, 2019. "Network tariff design with prosumers and electromobility: Who wins, who loses?," Energy Economics, Elsevier, vol. 83(C), pages 26-39.
    2. Rahman, Syed & Khan, Irfan Ahmed & Khan, Ashraf Ali & Mallik, Ayan & Nadeem, Muhammad Faisal, 2022. "Comprehensive review & impact analysis of integrating projected electric vehicle charging load to the existing low voltage distribution system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    3. Das, H.S. & Rahman, M.M. & Li, S. & Tan, C.W., 2020. "Electric vehicles standards, charging infrastructure, and impact on grid integration: A technological review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 120(C).
    4. Zhao, Yang & Noori, Mehdi & Tatari, Omer, 2017. "Boosting the adoption and the reliability of renewable energy sources: Mitigating the large-scale wind power intermittency through vehicle to grid technology," Energy, Elsevier, vol. 120(C), pages 608-618.
    5. Boampong, Richard & Brown, David P., 2020. "On the benefits of behind-the-meter rooftop solar and energy storage: The importance of retail rate design," Energy Economics, Elsevier, vol. 86(C).
    6. Sevdari, Kristian & Calearo, Lisa & Andersen, Peter Bach & Marinelli, Mattia, 2022. "Ancillary services and electric vehicles: An overview from charging clusters and chargers technology perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    7. Mahmoudzadeh Andwari, Amin & Pesiridis, Apostolos & Rajoo, Srithar & Martinez-Botas, Ricardo & Esfahanian, Vahid, 2017. "A review of Battery Electric Vehicle technology and readiness levels," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 414-430.
    8. Mahmud, Khizir & Town, Graham E. & Morsalin, Sayidul & Hossain, M.J., 2018. "Integration of electric vehicles and management in the internet of energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 4179-4203.
    9. Li, Xiaohui & Wang, Zhenpo & Zhang, Lei & Sun, Fengchun & Cui, Dingsong & Hecht, Christopher & Figgener, Jan & Sauer, Dirk Uwe, 2023. "Electric vehicle behavior modeling and applications in vehicle-grid integration: An overview," Energy, Elsevier, vol. 268(C).
    10. Gschwendtner, Christine & Sinsel, Simon R. & Stephan, Annegret, 2021. "Vehicle-to-X (V2X) implementation: An overview of predominate trial configurations and technical, social and regulatory challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    11. Hu, Junjie & Morais, Hugo & Sousa, Tiago & Lind, Morten, 2016. "Electric vehicle fleet management in smart grids: A review of services, optimization and control aspects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 1207-1226.
    12. Cambini, Carlo & Soroush, Golnoush, 2019. "Designing grid tariffs in the presence of distributed generation," Utilities Policy, Elsevier, vol. 61(C).
    13. Cohen, Jed & Azarova, Valeriya & Kollmann, Andrea & Reichl, Johannes, 2019. "Q-complementarity in household adoption of photovoltaics and electricity-intensive goods: The case of electric vehicles," Energy Economics, Elsevier, vol. 83(C), pages 567-577.
    14. Yong, Jia Ying & Ramachandaramurthy, Vigna K. & Tan, Kang Miao & Mithulananthan, N., 2015. "A review on the state-of-the-art technologies of electric vehicle, its impacts and prospects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 365-385.
    15. Jaržemskis Andrius & Jaržemskienė Ilona, 2022. "European Green Deal Implications on Country Level Energy Consumption," Folia Oeconomica Stetinensia, Sciendo, vol. 22(2), pages 97-122, December.
    16. Axel Gautier & Julien Jacqmin, 2020. "PV adoption: the role of distribution tariffs under net metering," Journal of Regulatory Economics, Springer, vol. 57(1), pages 53-73, February.
    17. Daziano, Ricardo A., 2022. "Willingness to delay charging of electric vehicles," Research in Transportation Economics, Elsevier, vol. 94(C).
    18. Axel Gautier & Julien Jacqmin & Jean-Christophe Poudou, 2018. "The prosumers and the grid," Journal of Regulatory Economics, Springer, vol. 53(1), pages 100-126, February.
    19. Pavić, Ivan & Capuder, Tomislav & Kuzle, Igor, 2016. "Low carbon technologies as providers of operational flexibility in future power systems," Applied Energy, Elsevier, vol. 168(C), pages 724-738.
    20. Khaleghikarahrodi, Mehrsa & Macht, Gretchen A., 2023. "Patterns, no patterns, that is the question: Quantifying users’ electric vehicle charging," Transport Policy, Elsevier, vol. 141(C), pages 291-304.

    More about this item

    Keywords

    Electric vehicles; Climate policy; Electricity distribution costs;
    All these keywords.

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juipol:v:72:y:2021:i:c:s0957178721000813. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.sciencedirect.com/journal/utilities-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.