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Willingness to pay for the infrastructure investments for alternative fuel vehicles


  • Nobuyuki Ito

    (Graduate School of Agriculture, Kyoto University)

  • Kenji Takeuchi

    (Graduate School of Economics, Kobe University)

  • Shunsuke Managi

    (Graduate School of Environmental Studies, Tohoku University)


This study investigates potential demand for infrastructure investment for alternative fuel vehicles (AFVs) by using a stated preference survey of 1,531 Japanese citizens. The potential demand is estimated on the basis of how much people are willing to pay for AFVs under different refueling scenarios. By using the estimated parameters, the economic efficiency of establishing battery exchange stations for electric vehicles is examined. The result indicates that infrastructural development of battery exchange stations can be socially efficient when the percentage of electric vehicle purchasers out of the total number of new vehicle purchasers exceeds 5.63%. Furthermore, in contrast to intuitive prediction, we found a complement relationship between the cruising ranges of AFVs and the infrastructures established. The result suggests that people with AFVs might change their total trip distance depending on the sufficiency of infrastructure investment.

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  • Nobuyuki Ito & Kenji Takeuchi & Shunsuke Managi, 2012. "Willingness to pay for the infrastructure investments for alternative fuel vehicles," Discussion Papers 1207, Graduate School of Economics, Kobe University.
  • Handle: RePEc:koe:wpaper:1207

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    References listed on IDEAS

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    Cited by:

    1. Ito, Nobuyuki & Takeuchi, Kenji & Managi, Shunsuke, 2019. "Do battery-switching systems accelerate the adoption of electric vehicles? A stated preference study," Economic Analysis and Policy, Elsevier, vol. 61(C), pages 85-92.
    2. Milan Scasny & Milan Scasny & Iva Zverinova & Mikolaj Czajkowski, 2015. "Individual preference for the alternative fuel vehicles and their attributes in Poland," EcoMod2015 8575, EcoMod.
    3. Hackbarth, André & Madlener, Reinhard, 2011. "Consumer Preferences for Alternative Fuel Vehicles: A Discrete Choice Analysis," FCN Working Papers 20/2011, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    4. Jeremy Webb & Max Briggs & Clevo Wilson, 2018. "Breaking automotive modal lock-in: a choice modelling study of Jakarta commuters," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(1), pages 47-68, January.
    5. Kim, Ga-Eun & Kim, Ju-Hee & Yoo, Seung-Hoon, 2019. "South Korean consumers’ preferences for eco-friendly gasoline sedans: Results from a choice experiment survey," Transport Policy, Elsevier, vol. 77(C), pages 1-7.
    6. Fabio Carlucci & Andrea Cirà & Giuseppe Lanza, 2018. "Hybrid Electric Vehicles: Some Theoretical Considerations on Consumption Behaviour," Sustainability, MDPI, Open Access Journal, vol. 10(4), pages 1-1, April.
    7. Shin, Kong Joo & Tada, Naoto & Managi, Shunsuke, 2019. "Consumer demand for fully automated driving technology," Economic Analysis and Policy, Elsevier, vol. 61(C), pages 16-28.
    8. Pacharaporn Arkornsakul & Woraphon Yamaka & Sombat Singkharat, 2015. "Consumer?s Willingness to Pay for Gasohol E100 in Chiang Mai Province and Nakhon Ratchasima Province," Proceedings of International Academic Conferences 2704676, International Institute of Social and Economic Sciences.
    9. Ito, Yutaka & Managi, Shunsuke, 2015. "The potential of alternative fuel vehicles: A cost-benefit analysis," Research in Transportation Economics, Elsevier, vol. 50(C), pages 39-50.
    10. Karsten Kieckhäfer & Thomas Volling & Thomas Stefan Spengler, 2014. "A Hybrid Simulation Approach for Estimating the Market Share Evolution of Electric Vehicles," Transportation Science, INFORMS, vol. 48(4), pages 651-670, November.
    11. Kim, Ju-Hee & Kim, Hyo-Jin & Yoo, Seung-Hoon, 2019. "Willingness to pay for fuel-cell electric vehicles in South Korea," Energy, Elsevier, vol. 174(C), pages 497-502.
    12. Gabriela D. Oliveira & Luis C. Dias, 2019. "Influence of Demographics on Consumer Preferences for Alternative Fuel Vehicles: A Review of Choice Modelling Studies and a Study in Portugal," Energies, MDPI, Open Access Journal, vol. 12(2), pages 1-1, January.
    13. Makena Coffman & Scott Allen & Sherilyn Wee, 2018. "Who are Driving Electric Vehicles? An analysis of factors that affect EV adoption in Hawaii," Working Papers 2018-3, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    14. Hackbarth, André & Madlener, Reinhard, 2016. "Willingness-to-pay for alternative fuel vehicle characteristics: A stated choice study for Germany," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 89-111.
    15. Byunghun Choi, 2016. "A Study on Limitation of Government Initiative Model for Alternative Fuel Vehicle (AFV) Promotion in China," Eurasian Journal of Social Sciences, , vol. 4(2), pages 66-84.

    More about this item


    Alternative fuel vehicle; infrastructure investment; stated preference method; choice experiment; discrete choice; nested logit model; cost-benefit analysis;

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