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

George Parsons, Michael K. Hidrue (), Willett Kempton () and Meryl P. Gardner ()
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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

No 11-21, Working Papers from University of Delaware, Department of Economics

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.

Keywords: electric vehicles; vehicle-to-grid; stated preference; latent-class model (search for similar items in EconPapers)
JEL-codes: Q42 Q51 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2011
New Economics Papers: this item is included in nep-ene and nep-mkt
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Citations: View citations in EconPapers (3)

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