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Preferences for alternative fuel vehicles of company car drivers

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  • Koetse, Mark J.
  • Hoen, Anco

Abstract

Costs of car ownership for company cars drivers and private car owners are very different. Car use, car choice decisions and preferences for car characteristics may therefore differ substantially between these two markets. In this paper, we present results of a study on the preferences of company car drivers for alternative fuel vehicles and their characteristics, based on data from an online stated choice experiment in the Netherlands. Results show that, assuming current car characteristics, preferences for alternative fuel vehicles, and for electric and fuel cell cars in particular, are substantially lower than those for the conventional technology. Limited driving ranges, long recharge/refuelling times and limited availability of refuelling opportunities, are to a large extent responsible for this. Preferences for alternative fuel vehicles increase considerably with improvements on these aspects, especially for the hybrid and flexifuel car. Under the current company car tax system in the Netherlands, which favours cleaner technologies, these two car types are even preferred to the conventional technology, assuming equal catalogue prices and personal monthly cost contributions. Comparing results with those from a similar choice experiment among private car owners shows that willingness to pay patterns for AFV improvements regarding driving range, recharge and refuelling times, fuel availability and diversity in AFV supply, are considerably different for company car drivers than for private car owners. Company and private car drivers may therefore react (very) differently to future improvements in AFV technology and fuel availability. We finally show that preferences of company car drivers for fuel cell and electric cars depend to a large extent on annual mileage. Market share simulations show that potential early adopters of electric and fuel cell cars can be found among people with a relatively low annual mileage.

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  • Koetse, Mark J. & Hoen, Anco, 2014. "Preferences for alternative fuel vehicles of company car drivers," Resource and Energy Economics, Elsevier, vol. 37(C), pages 279-301.
    • Handle: RePEc:eee:resene:v:37:y:2014:i:c:p:279-301
    DOI: 10.1016/j.reseneeco.2013.12.006
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    14. Konstantinou, Theodora & Gkritza, Konstantina, 2023. "Are we getting close to truck electrification? U.S. truck fleet managers’ stated intentions to electrify their fleets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 173(C).
    15. Irani, Alexandra & Chalak, Ali, 2015. "Harnessing motorists’ potential demand for hybrid-electric vehicles in Lebanon: Policy options, CO2 emissions reduction and welfare gains," Transport Policy, Elsevier, vol. 42(C), pages 144-155.
    16. Shafiei, Ehsan & Davidsdottir, Brynhildur & Leaver, Jonathan & Stefansson, Hlynur & Asgeirsson, Eyjolfur Ingi & Keith, David R., 2016. "Analysis of supply-push strategies governing the transition to biofuel vehicles in a market-oriented renewable energy system," Energy, Elsevier, vol. 94(C), pages 409-421.
    17. Demeulenaere, Xavier, 2019. "The use of automotive fleets to support the diffusion of Alternative Fuel Vehicles: A Rapid Evidence Assessment of barriers and decision mechanisms," Research in Transportation Economics, Elsevier, vol. 76(C).
    18. Yuanjian Zhang & Liang Chu & Zicheng Fu & Nan Xu & Chong Guo & Yukuan Li & Zhouhuan Chen & Hanwen Sun & Qin Bai & Yang Ou, 2017. "An Economical Route Planning Method for Plug-In Hybrid Electric Vehicle in Real World," Energies, MDPI, vol. 10(11), pages 1-23, November.
    19. Ensslen, Axel & Gnann, Till & Jochem, Patrick & Plötz, Patrick & Dütschke, Elisabeth & Fichtner, Wolf, 2020. "Can product service systems support electric vehicle adoption?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 343-359.
    20. Byun, Hyunsuk & Shin, Jungwoo & Lee, Chul-Yong, 2018. "Using a discrete choice experiment to predict the penetration possibility of environmentally friendly vehicles," Energy, Elsevier, vol. 144(C), pages 312-321.
    21. Sehatpour, Mohammad-Hadi & Kazemi, Aliyeh & Sehatpour, Hesam-eddin, 2017. "Evaluation of alternative fuels for light-duty vehicles in Iran using a multi-criteria approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 295-310.
    22. Berkeley, Nigel & Bailey, David & Jones, Andrew & Jarvis, David, 2017. "Assessing the transition towards Battery Electric Vehicles: A Multi-Level Perspective on drivers of, and barriers to, take up," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 320-332.
    23. Burghard, Uta & Scherrer, Aline & Dütschke, Elisabeth & Globisch, Joachim, 2020. "Social acceptance of electric mobility in Germany," Working Papers "Sustainability and Innovation" S12/2020, Fraunhofer Institute for Systems and Innovation Research (ISI).
    24. Hardman, Scott & Shiu, Eric & Steinberger-Wilckens, Robert, 2016. "Comparing high-end and low-end early adopters of battery electric vehicles," Transportation Research Part A: Policy and Practice, Elsevier, vol. 88(C), pages 40-57.
    25. Bigerna, S. & Bollino, C.A. & Micheli, S. & Polinori, P., 2017. "Revealed and stated preferences for CO2 emissions reduction: The missing link," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P2), pages 1213-1221.

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    More about this item

    Keywords

    Car choice; Alternative fuel vehicles; Company cars; Choice experiment; Policy tax; Annual mileage;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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