Adoption of Electric Vehicle in the Netherlands – A Stated Choice Experiment
Piet Rietveld and
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M. Bockarjova: VU University Amsterdam
J.S.A. Knockaert: VU University Amsterdam
No 13-100/VIII, Tinbergen Institute Discussion Papers from Tinbergen Institute
In this paper, we apply a dynamic innovation diffusion framework to model adoption of full electric vehicles where we explicitly distinguish three major phases of adoption: introduction, growth and maturity. We combine this approach with an SP study to elicit individual preferences for conventional, hybrid and full electric vehicles. We apply a nested logit model to estimate the preferences for EVs based on the total costs of ownership approach that includes monetary and non-monetary costs of owing a vehicle. With negative estimates of WTP for hybrid vehicles (of about €900 on a yearly basis), our results suggest abolishment of subsidization of hybrid vehicles as they potentially crowd out EV adoption. Besides, EVs need to be subsidized on average at €2,000 per year, and this amount is decreasing in the process of vehicle adoption. Time costs associated with rapid charging are a substantial hindrance to EV adoption with average value of time of €63 per hour, increasing for each subsequent consumer segment from €48 to €122 per hour. Environmental costs of CO2 reductions are valued far above the market average at €160 per ton, but determine EV choices only at a later stage of adoption. Finally, towing potential is valued on average at €540 per year and it is about the same for all consumer segments throughout the adoption phases. Policy implications are discussed involving a mix of structural and monetary incentives.
Keywords: stated preferences; revealed preferences; non-monetary costs; innovation (search for similar items in EconPapers)
JEL-codes: C01 C33 D12 D49 D91 R41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm, nep-ene and nep-tre
Date: 2013-07-30, Revised 2013-08-01
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20130100
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