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Impact of Service Station Networks on Purchase Decisions of Alternative-fuel Vehicles

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  • Achtnicht, Martin
  • Bühler, Georg
  • Hermeling, Claudia

Abstract

In this paper we analyze the impact of service station availability on the demand for alternative-fuel vehicles and the consumers' willingness to pay for an enlarged fueling infrastructure. We examine a stated preferences choice experiment conducted as a CAPI survey with about 600 interviews of potential car buyers in Germany and estimate the coefficients of a discrete choice model. We simulate different scenarios and analyze how individual choice probabilities for alternative fuel-types are changing with a modified fueling infrastructure. In our scenarios hybrids, LPG/CNG and hydrogen will be real alternatives to the existing conventional technologies. However, biofuels and electric power trains are well behind even in a situation where their infrastructure is equally developed. Moreover, on the basis of our model we compute what increases in fixed or variable costs consumers of different income groups are willing to accept for an increasing station density.

Suggested Citation

  • Achtnicht, Martin & Bühler, Georg & Hermeling, Claudia, 2008. "Impact of Service Station Networks on Purchase Decisions of Alternative-fuel Vehicles," ZEW Discussion Papers 08-088, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:7430
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    3. Rudolph, Christian, 2016. "How may incentives for electric cars affect purchase decisions?," Transport Policy, Elsevier, vol. 52(C), pages 113-120.
    4. Aileen Lam, 2013. "Projections of future emissions and energy use from passenger cars as a result of policies in the EU with a dynamic model of technological change," 4CMR Working Paper Series 005, University of Cambridge, Department of Land Economy, Cambridge Centre for Climate Change Mitigation Research.
    5. Biscoff, Robert & Akple, Maxwell & Turkson, Richard & Klomegah, Wise, 2012. "Scenario of the emerging shift from gasoline to LPG fuelled cars in Ghana: A case study in Ho Municipality, Volta Region," Energy Policy, Elsevier, vol. 44(C), pages 354-361.
    6. Alexandros Dimitropoulos & Piet Rietveld & Jos N. van Ommeren, 2011. "Consumer Valuation of Driving Range: A Meta-Analysis," Tinbergen Institute Discussion Papers 11-133/3, Tinbergen Institute.
    7. J�r�me Massiani, 2013. "The use of Stated Preferences to forecast alternative fuel vehicles market diffusion: Comparisons with other methods and proposal for a Synthetic Utility Function," Working Papers 2013:12, Department of Economics, University of Venice "Ca' Foscari".
    8. Engerer, Hella & Horn, Manfred, 2010. "Natural gas vehicles: An option for Europe," Energy Policy, Elsevier, vol. 38(2), pages 1017-1029, February.
    9. Ernst, Christian-Simon & Hackbarth, André & Madlener, Reinhard & Lunz, Benedikt & Uwe Sauer, Dirk & Eckstein, Lutz, 2011. "Battery sizing for serial plug-in hybrid electric vehicles: A model-based economic analysis for Germany," Energy Policy, Elsevier, vol. 39(10), pages 5871-5882, October.
    10. Valeri, Eva & Danielis, Romeo, 2015. "Simulating the market penetration of cars with alternative fuelpowertrain technologies in Italy," Transport Policy, Elsevier, vol. 37(C), pages 44-56.
    11. Kreuzer, Fabian Maximilian & Wilmsmeier, Gordon, 2014. "Energy efficiency and mobility: A roadmap towards a greener economy in Latin America and the Caribbean," Documentos de Proyectos 37148, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    12. 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.
    13. J�r�me Massiani, 2013. "SP surveys for electric and alternative fuel vehicles: are we doing the right thing?," Working Papers 2013_01, Department of Economics, University of Venice "Ca' Foscari".
    14. Daziano, Ricardo A. & Chiew, Esther, 2012. "Electric vehicles rising from the dead: Data needs for forecasting consumer response toward sustainable energy sources in personal transportation," Energy Policy, Elsevier, vol. 51(C), pages 876-894.
    15. Gómez Vilchez, Jonatan J. & Jochem, Patrick, 2019. "Simulating vehicle fleet composition: A review of system dynamics models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).

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    More about this item

    Keywords

    Fueling Infrastructure; Alternative Fuels; Automobile Market; Stated Preferences; Discrete Choice; Network Effects;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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