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Can Vehicle-to-Grid Revenue Help Electric Vehicles on the Market?

Author

Listed:
  • George R. Parsons

    () (Department of Environmental and Natural Resource Economics, University of Delaware)

  • Michael K. Hidrue

    () (Department of Economics, University of Delaware)

  • Willett Kempton

    () (Department of Electrical & Computer Engineering, University of Delaware)

  • Meryl P. Gardner

    () (Department of Business Administration, University of Delaware)

Abstract

Vehicle-to-grid (V2G) electric vehicles can return power stored in their batteries back to the power grid and be programmed to do so at times when power prices are high. Since providing this service can lead to payments to owners of vehicles, it effectively reduces the cost of electric vehicles. Using data from a national stated preference survey (n = 3029), this paper presents the first study of the potential consumer demand for V2G electric vehicles. In our choice experiment, 3029 respondents compared their preferred gasoline vehicle with two V2G electric vehicles. The V2G vehicles were described by a set of electric vehicle attributes and V2G contract requirements such as “required plug-in time” and “guaranteed minimum driving range”. The contract requirements specify a contract between drivers and a power aggregator for providing reserve power to the grid. Our findings suggest the V2G concept is mostly likely to help EVs on the market if power aggregators operate on pay-as-you-go-basis or provide consumers with advanced cash payment (upfront discounts on the price of EVs) in exchange for V2G restrictions.

Suggested Citation

  • George R. Parsons & Michael K. Hidrue & Willett Kempton & Meryl P. Gardner, 2011. "Can Vehicle-to-Grid Revenue Help Electric Vehicles on the Market?," Working Papers 11-21, University of Delaware, Department of Economics.
  • Handle: RePEc:dlw:wpaper:11-21.
    as

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    File URL: http://graduate.lerner.udel.edu/sites/default/files/ECON/PDFs/RePEc/dlw/WorkingPapers/2011/UDWP2011-21.pdf
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    References listed on IDEAS

    as
    1. 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.
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    3. Kempton, Willett & Tomic, Jasna & Letendre, Steven & Brooks, Alec & Lipman, Timothy, 2001. "Vehicle-to-Grid Power: Battery, Hybrid, and Fuel Cell Vehicles as Resources for Distributed Electric Power in California," Institute of Transportation Studies, Working Paper Series qt0qp6s4mb, Institute of Transportation Studies, UC Davis.
    4. Kempton, Willett & Tomic, Jasna & Letendre, Steven & Brooks, Alec & Lipman, Timothy, 2001. "Vehicle-to-Grid Power: Battery, Hybrid, and Fuel Cell Vehicles as Resources for Distributed Electric Power in California," Institute of Transportation Studies, Working Paper Series qt5cc9g0jp, Institute of Transportation Studies, UC Davis.
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    Cited by:

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    3. Danielis, Romeo & Scorrano, Mariangela & Giansoldati, Marco & Rotaris, Lucia, 2019. "A meta-analysis of the importance of the driving range in consumers’ preference studies for battery electric vehicles," Working Papers 19_2, SIET Società Italiana di Economia dei Trasporti e della Logistica.

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    More about this item

    Keywords

    electric vehicles; vehicle-to-grid; stated preference; latent-class model;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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