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Impact of service station networks on purchase decisions of alternative-fuel vehicles

Martin Achtnicht, Georg Bühler and Claudia Hermeling

ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: In this paper, we study the impact of fuel availability on demand for alternative-fuel vehicles, using data from a survey of some 600 potential car buyers in Germany. The survey was conducted as a computer-assisted personal interview and included a choice experiment involving cars with various fuel types. Applying a standard logit model, we show that fuel availability influences choices positively, but its marginal utility diminishes with supply. Furthermore, we derive consumers' marginal willingness to pay for an expanded service station network. The results suggest that a failure to expand the availability of alternative fuel stations represents a significant barrier to the widespread adoption of alternative-fuel vehicles.

Keywords: Alternative Fuels; Automobile; Fueling Infrastructure; Stated Preference (search for similar items in EconPapers)
JEL-codes: C25 D12 R41 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-ene, nep-net and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:08088r

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