Potential Hydrogen Market: Value-Added Services Increase Economic Efficiency for Hydrogen Energy Suppliers

Wenhui Zhao, Jibin Ma, Zhanyang Wang, Youting Li and Weishi Zhang
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Wenhui Zhao: School of Economics and Management, Shanghai University of Electric Power, Shanghai 200090, China
Jibin Ma: School of Economics and Management, Shanghai University of Electric Power, Shanghai 200090, China
Zhanyang Wang: Shanghai Shenergy Fengxian Thermal Power Co., Ltd., Shenergy Group Co., Ltd., Shanghai 201417, China
Youting Li: Xianyang Power Supply Company, State Grid Shaanxi Electric Power Company, Xianyang 712000, China
Weishi Zhang: Anhui Power Exchange Center Co., Ltd., Hefei 230022, China

Sustainability, 2022, vol. 14, issue 8, 1-18

Abstract: Hydrogen energy is a clean, zero-carbon, long-term storage, flexible and efficient secondary energy. Accelerating the development of the hydrogen energy industry is a strategic choice to cope with global climate change, achieve the goal of carbon neutrality, and realize high-quality economic and social development. This study aimed to analyze the economic impact of introducing value-added services to the hydrogen energy market on hydrogen energy suppliers. Considering the network effect of value-added services, this study used a two-stage game model to quantitatively analyze the revenue of hydrogen energy suppliers under different scenarios and provided the optimal decision. The results revealed that (1) the revenue of a hydrogen energy supplier increases only if the intrinsic value of value-added services exceeds a certain threshold; (2) the revenue of hydrogen energy suppliers is influenced by a combination of four key factors: the intrinsic value of value-added services, network effects, user scale, and the sales strategies of rivals; (3) the model developed in this paper can provide optimal decisions for hydrogen energy suppliers to improve their economic efficiency and bring more economic investment to hydrogen energy market in the future.

Keywords: hydrogen energy market; hydrogen value-added services; network effect; economic investment (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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