IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v114y2017icp165-178.html
   My bibliography  Save this article

An exploratory policy analysis of electric vehicle sales competition and sensitivity to infrastructure in Europe

Author

Listed:
  • Harrison, Gillian
  • Thiel, Christian

Abstract

This research contributes to discussions about policy interventions to stimulate the transition of vehicle technology. Concentrating on passenger cars, an extensive system dynamics based market agent model of powertrain technology transitions within the EU up to 2050 is employed. With a focus on subsidy scenarios for both infrastructure deployment and vehicle purchase, and set within the context of the EU fleet emission regulations, we find that there are important interactions between different powertrain types and with infrastructure provision. For example, strong plug-in electric vehicle (PiEV) policy could inhibit the maturity of hydrogen fuel cell vehicles. Infrastructure provision is important for improving the utility of a PiEV, but we find that in the early market it may have a weaker correlation with uptake than other policy options, until the PiEV stock share is over around 5%. Furthermore, an attempt to install a ratio of much more than one charge point per 10 PiEV may lead to little gains and high costs. PiEV sales are relatively insensitive at target levels over 25 PiEV per charge point. The results of our study can help policymakers to find the right balance and timing of measures targeting the transition towards low carbon alternative vehicles.

Suggested Citation

  • Harrison, Gillian & Thiel, Christian, 2017. "An exploratory policy analysis of electric vehicle sales competition and sensitivity to infrastructure in Europe," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 165-178.
  • Handle: RePEc:eee:tefoso:v:114:y:2017:i:c:p:165-178
    DOI: 10.1016/j.techfore.2016.08.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162516302104
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.techfore.2016.08.007?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Foxon, T. J. & Gross, R. & Chase, A. & Howes, J. & Arnall, A. & Anderson, D., 2005. "UK innovation systems for new and renewable energy technologies: drivers, barriers and systems failures," Energy Policy, Elsevier, vol. 33(16), pages 2123-2137, November.
    2. Gillian Harrison & Simon Shepherd, 2014. "An interdisciplinary study to explore impacts from policies for the introduction of low carbon vehicles," Transportation Planning and Technology, Taylor & Francis Journals, vol. 37(1), pages 98-117, February.
    3. Robinson, A.P. & Blythe, P.T. & Bell, M.C. & Hübner, Y. & Hill, G.A., 2013. "Analysis of electric vehicle driver recharging demand profiles and subsequent impacts on the carbon content of electric vehicle trips," Energy Policy, Elsevier, vol. 61(C), pages 337-348.
    4. Janssen, Arthur & Lienin, Stephan F. & Gassmann, Fritz & Wokaun, Alexander, 2006. "Model aided policy development for the market penetration of natural gas vehicles in Switzerland," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(4), pages 316-333, May.
    5. Jeroen Struben & John D Sterman, 2008. "Transition Challenges for Alternative Fuel Vehicle and Transportation Systems," Environment and Planning B, , vol. 35(6), pages 1070-1097, December.
    6. Kwon, Tae-hyeong, 2012. "Strategic niche management of alternative fuel vehicles: A system dynamics model of the policy effect," Technological Forecasting and Social Change, Elsevier, vol. 79(9), pages 1672-1680.
    7. Gass, V. & Schmidt, J. & Schmid, E., 2014. "Analysis of alternative policy instruments to promote electric vehicles in Austria," Renewable Energy, Elsevier, vol. 61(C), pages 96-101.
    8. Pasaoglu, Guzay & Honselaar, Michel & Thiel, Christian, 2012. "Potential vehicle fleet CO2 reductions and cost implications for various vehicle technology deployment scenarios in Europe," Energy Policy, Elsevier, vol. 40(C), pages 404-421.
    9. Shepherd, Simon & Bonsall, Peter & Harrison, Gillian, 2012. "Factors affecting future demand for electric vehicles: A model based study," Transport Policy, Elsevier, vol. 20(C), pages 62-74.
    10. Brand, Christian & Anable, Jillian & Tran, Martino, 2013. "Accelerating the transformation to a low carbon passenger transport system: The role of car purchase taxes, feebates, road taxes and scrappage incentives in the UK," Transportation Research Part A: Policy and Practice, Elsevier, vol. 49(C), pages 132-148.
    11. Björn Nykvist & Måns Nilsson, 2015. "Rapidly falling costs of battery packs for electric vehicles," Nature Climate Change, Nature, vol. 5(4), pages 329-332, April.
    12. Stepp, Matthew D. & Winebrake, James J. & Hawker, J. Scott & Skerlos, Steven J., 2009. "Greenhouse gas mitigation policies and the transportation sector: The role of feedback effects on policy effectiveness," Energy Policy, Elsevier, vol. 37(7), pages 2774-2787, July.
    13. Hoen, Anco & Koetse, Mark J., 2014. "A choice experiment on alternative fuel vehicle preferences of private car owners in the Netherlands," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 199-215.
    14. Brownstone, David & Bunch, David S & Golob, Thomas F & Ren, Weiping, 1996. "A Transactions Choice Model for Forecasting Demand for Alternative-Fuel Vehicles," University of California Transportation Center, Working Papers qt3sm7w9zk, University of California Transportation Center.
    15. Plötz, Patrick & Schneider, Uta & Globisch, Joachim & Dütschke, Elisabeth, 2014. "Who will buy electric vehicles? Identifying early adopters in Germany," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 96-109.
    16. Lim, Dong-Joon & Anderson, Timothy R. & Inman, Oliver Lane, 2014. "Choosing effective dates from multiple optima in Technology Forecasting using Data Envelopment Analysis (TFDEA)," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 91-97.
    17. Wolf, Ingo & Schröder, Tobias & Neumann, Jochen & de Haan, Gerhard, 2015. "Changing minds about electric cars: An empirically grounded agent-based modeling approach," Technological Forecasting and Social Change, Elsevier, vol. 94(C), pages 269-285.
    18. Pasaoglu, Guzay & Harrison, Gillian & Jones, Lee & Hill, Andrew & Beaudet, Alexandre & Thiel, Christian, 2016. "A system dynamics based market agent model simulating future powertrain technology transition: Scenarios in the EU light duty vehicle road transport sector," Technological Forecasting and Social Change, Elsevier, vol. 104(C), pages 133-146.
    19. Noori, Mehdi & Tatari, Omer, 2016. "Development of an agent-based model for regional market penetration projections of electric vehicles in the United States," Energy, Elsevier, vol. 96(C), pages 215-230.
    20. Namdeo, A. & Tiwary, A. & Dziurla, R., 2014. "Spatial planning of public charging points using multi-dimensional analysis of early adopters of electric vehicles for a city region," Technological Forecasting and Social Change, Elsevier, vol. 89(C), pages 188-200.
    21. Eppstein, Margaret J. & Grover, David K. & Marshall, Jeffrey S. & Rizzo, Donna M., 2011. "An agent-based model to study market penetration of plug-in hybrid electric vehicles," Energy Policy, Elsevier, vol. 39(6), pages 3789-3802, June.
    22. Zubaryeva, Alyona & Thiel, Christian & Zaccarelli, Nicola & Barbone, Enrico & Mercier, Arnaud, 2012. "Spatial multi-criteria assessment of potential lead markets for electrified vehicles in Europe," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(9), pages 1477-1489.
    23. Hidrue, Michael K. & Parsons, George R. & Kempton, Willett & Gardner, Meryl P., 2011. "Willingness to pay for electric vehicles and their attributes," Resource and Energy Economics, Elsevier, vol. 33(3), pages 686-705, September.
    24. Maia, Sara Costa & Teicher, Hannah & Meyboom, AnnaLisa, 2015. "Infrastructure as social catalyst: Electric vehicle station planning and deployment," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 53-65.
    25. van der Vooren & Eric Brouillat, 2013. "Evaluating CO2 reduction policy portfolios in the automotive sector," Innovation Studies Utrecht (ISU) working paper series 13-01, Utrecht University, Department of Innovation Studies, revised Feb 2013.
    26. Li, Guo-Dong & Masuda, Shiro & Nagai, Masatake, 2014. "Predicting the subscribers of fixed-line and cellular phone in Japan by a novel prediction model," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 321-330.
    27. Jeroen Struben & John D. Sterman, 2008. "Transition Challenges for Alternative Fuel Vehicle and Transportation Systems," Post-Print hal-02312277, HAL.
    28. Shafiei, Ehsan & Thorkelsson, Hedinn & Ásgeirsson, Eyjólfur Ingi & Davidsdottir, Brynhildur & Raberto, Marco & Stefansson, Hlynur, 2012. "An agent-based modeling approach to predict the evolution of market share of electric vehicles: A case study from Iceland," Technological Forecasting and Social Change, Elsevier, vol. 79(9), pages 1638-1653.
    29. Dagsvik, John K. & Wennemo, Tom & Wetterwald, Dag G. & Aaberge, Rolf, 2002. "Potential demand for alternative fuel vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 36(4), pages 361-384, May.
    30. Brand, Christian & Tran, Martino & Anable, Jillian, 2012. "The UK transport carbon model: An integrated life cycle approach to explore low carbon futures," Energy Policy, Elsevier, vol. 41(C), pages 107-124.
    31. Sierzchula, William & Bakker, Sjoerd & Maat, Kees & van Wee, Bert, 2014. "The influence of financial incentives and other socio-economic factors on electric vehicle adoption," Energy Policy, Elsevier, vol. 68(C), pages 183-194.
    32. Tran, Martino & Banister, David & Bishop, Justin D.K. & McCulloch, Malcolm D., 2013. "Simulating early adoption of alternative fuel vehicles for sustainability," Technological Forecasting and Social Change, Elsevier, vol. 80(5), pages 865-875.
    33. Diamond, David, 2009. "The impact of government incentives for hybrid-electric vehicles: Evidence from US states," Energy Policy, Elsevier, vol. 37(3), pages 972-983, March.
    34. Itf, 2010. "Stimulating Low-Carbon Vehicle Technologies: Summary and Conclusions," OECD/ITF Joint Transport Research Centre Discussion Papers 2010/13, OECD Publishing.
    35. Campbell, Amy R. & Ryley, Tim & Thring, Rob, 2012. "Identifying the early adopters of alternative fuel vehicles: A case study of Birmingham, United Kingdom," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(8), pages 1318-1327.
    36. Beggs, S. & Cardell, S. & Hausman, J., 1981. "Assessing the potential demand for electric cars," Journal of Econometrics, Elsevier, vol. 17(1), pages 1-19, September.
    Full references (including those not matched with items on IDEAS)

    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. Oliveira, Gabriela D. & Roth, Richard & Dias, Luis C., 2019. "Diffusion of alternative fuel vehicles considering dynamic preferences," Technological Forecasting and Social Change, Elsevier, vol. 147(C), pages 83-99.
    2. Morton, Craig & Anable, Jillian & Yeboah, Godwin & Cottrill, Caitlin, 2018. "The spatial pattern of demand in the early market for electric vehicles: Evidence from the United Kingdom," Journal of Transport Geography, Elsevier, vol. 72(C), pages 119-130.
    3. Makena Coffman & Paul Bernstein & Sherilyn Wee, 2017. "Electric vehicles revisited: a review of factors that affect adoption," Transport Reviews, Taylor & Francis Journals, vol. 37(1), pages 79-93, January.
    4. Jiali Yu & Peng Yang & Kai Zhang & Faping Wang & Lixin Miao, 2018. "Evaluating the Effect of Policies and the Development of Charging Infrastructure on Electric Vehicle Diffusion in China," Sustainability, MDPI, vol. 10(10), pages 1-25, September.
    5. Pasaoglu, Guzay & Harrison, Gillian & Jones, Lee & Hill, Andrew & Beaudet, Alexandre & Thiel, Christian, 2016. "A system dynamics based market agent model simulating future powertrain technology transition: Scenarios in the EU light duty vehicle road transport sector," Technological Forecasting and Social Change, Elsevier, vol. 104(C), pages 133-146.
    6. Mohammadreza Zolfagharian & Bob Walrave & A. Georges L. Romme & Rob Raven, 2020. "Toward the Dynamic Modeling of Transition Problems: The Case of Electric Mobility," Sustainability, MDPI, vol. 13(1), pages 1-23, December.
    7. Elena Higueras-Castillo & Sebastian Molinillo & J. Andres Coca-Stefaniak & Francisco Liébana-Cabanillas, 2020. "Potential Early Adopters of Hybrid and Electric Vehicles in Spain—Towards a Customer Profile," Sustainability, MDPI, vol. 12(11), pages 1-18, May.
    8. Soares, N. & Martins, A.G. & Carvalho, A.L. & Caldeira, C. & Du, C. & Castanheira, É. & Rodrigues, E. & Oliveira, G. & Pereira, G.I. & Bastos, J. & Ferreira, J.P. & Ribeiro, L.A. & Figueiredo, N.C. & , 2018. "The challenging paradigm of interrelated energy systems towards a more sustainable future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 95(C), pages 171-193.
    9. Lee, Yongseung & Kim, Chongman & Shin, Juneseuk, 2016. "A hybrid electric vehicle market penetration model to identify the best policy mix: A consumer ownership cycle approach," Applied Energy, Elsevier, vol. 184(C), pages 438-449.
    10. Ranjit R. Desai & Eric Hittinger & Eric Williams, 2022. "Interaction of Consumer Heterogeneity and Technological Progress in the US Electric Vehicle Market," Energies, MDPI, vol. 15(13), pages 1-25, June.
    11. Sykes, Maxwell & Axsen, Jonn, 2017. "No free ride to zero-emissions: Simulating a region's need to implement its own zero-emissions vehicle (ZEV) mandate to achieve 2050 GHG targets," Energy Policy, Elsevier, vol. 110(C), pages 447-460.
    12. Sun, Xiaohua & Liu, Xiaoling & Wang, Yun & Yuan, Fang, 2019. "The effects of public subsidies on emerging industry: An agent-based model of the electric vehicle industry," Technological Forecasting and Social Change, Elsevier, vol. 140(C), pages 281-295.
    13. Zhang, Qi & Li, Hailong & Zhu, Lijing & Campana, Pietro Elia & Lu, Huihui & Wallin, Fredrik & Sun, Qie, 2018. "Factors influencing the economics of public charging infrastructures for EV – A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 500-509.
    14. Gnann, Till & Stephens, Thomas S. & Lin, Zhenhong & Plötz, Patrick & Liu, Changzheng & Brokate, Jens, 2018. "What drives the market for plug-in electric vehicles? - A review of international PEV market diffusion models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 158-164.
    15. Al-Alawi, Baha M. & Bradley, Thomas H., 2013. "Review of hybrid, plug-in hybrid, and electric vehicle market modeling Studies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 190-203.
    16. Anders F. Jensen & Elisabetta Cherchi & Stefan L. Mabit & Juan de Dios Ortúzar, 2017. "Predicting the Potential Market for Electric Vehicles," Transportation Science, INFORMS, vol. 51(2), pages 427-440, May.
    17. Kwon, Yeongmin & Son, Sanghoon & Jang, Kitae, 2018. "Evaluation of incentive policies for electric vehicles: An experimental study on Jeju Island," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 404-412.
    18. Wolinetz, Michael & Axsen, Jonn, 2017. "How policy can build the plug-in electric vehicle market: Insights from the REspondent-based Preference And Constraints (REPAC) model," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 238-250.
    19. Udit Chawla & Rajesh Mohnot & Varsha Mishra & Harsh Vikram Singh & Ayush Kumar Singh, 2023. "Factors Influencing Customer Preference and Adoption of Electric Vehicles in India: A Journey towards More Sustainable Transportation," Sustainability, MDPI, vol. 15(8), pages 1-15, April.
    20. Xiaoxue Zheng & Haiyan Lin & Zhi Liu & Dengfeng Li & Carlos Llopis-Albert & Shouzhen Zeng, 2018. "Manufacturing Decisions and Government Subsidies for Electric Vehicles in China: A Maximal Social Welfare Perspective," Sustainability, MDPI, vol. 10(3), pages 1-28, March.

    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:tefoso:v:114:y:2017:i:c:p:165-178. 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: http://www.sciencedirect.com/science/journal/00401625 .

    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.