Developing an optimal building strategy for electric vehicle charging stations: automaker role

Jian Feng, Yifan Yao and Zhenfeng Liu ()
Additional contact information
Jian Feng: Shanghai Maritime University
Yifan Yao: Shanghai Maritime University
Zhenfeng Liu: Shanghai Maritime University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2025, vol. 27, issue 5, No 87, 12151 pages

Abstract: Abstract The scarcity of electric vehicle (EV) charging stations is a critical barrier to the widespread adoption of EVs. Manufacturers face uncertainty in participating in building charging stations and developing station types. We investigate the manufacturer’s optimal building strategy by developing a game-theoretic model. The results show that, when the construction cost is relatively low, the manufacturer has an incentive to build charging stations; otherwise, the manufacturer should make a trade-off between competition and cooperation with the platform. When the construction cost of super charging stations goes high and the network effect is not as large, the manufacturer decides to build general charging stations. Regardless of the type of charging stations, the scale of charging stations and EV demand always increases, but the platform’s construction scale does not always enlarge. Interestingly, if the charging competition hurts the platform’s profit, the manufacturer lowers EV price. The EV-to-charging station ratio can only decrease and the charging service level can only improve if the increment in EV demand is lower than that in charging stations; otherwise, the charging service level may worsen. Moreover, the change in both the fraction of consumers and construction cost can achieve win–win or win-lose situations for both manufacturers and platforms. Finally, although there can be a win–win situation for both entities in the joint mode, the self-built mode is always the dominant strategy. These insights not only contribute to guiding the manufacturer’s strategies for building charging stations to promote EV adoption, but also provide advice to improve EV charging service level.

Keywords: Game theory; Pricing strategy; Charging station; Building strategy; Electric vehicle (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10668-024-05326-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:endesu:v:27:y:2025:i:5:d:10.1007_s10668-024-05326-6

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10668

DOI: 10.1007/s10668-024-05326-6

Access Statistics for this article

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development is currently edited by Luc Hens

More articles in Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().