Adoption of Electric Vehicle in the Netherlands - A Stated Choice Experiment

Tinbergen Institute Discussion Paper 13-100/VIII

34 Pages Posted: 6 Aug 2013

See all articles by Marija Bockarjova

Marija Bockarjova

VU University Amsterdam - Department of Spatial Economics; University of Groningen - Department of Social and Organizational Psychology

Piet Rietveld

VU University Amsterdam - Department of Spatial Economics (Deceased)

Jasper Knockaert

affiliation not provided to SSRN

Date Written: August 6, 2013

Abstract

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

JEL Classification: C010, C330, D120, D490, D910, R410

Suggested Citation

Bockarjova, Marija and Rietveld, Piet and Knockaert, Jasper, Adoption of Electric Vehicle in the Netherlands - A Stated Choice Experiment (August 6, 2013). Tinbergen Institute Discussion Paper 13-100/VIII, Available at SSRN: https://ssrn.com/abstract=2306505 or http://dx.doi.org/10.2139/ssrn.2306505

Marija Bockarjova (Contact Author)

VU University Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands

University of Groningen - Department of Social and Organizational Psychology ( email )

Grote Kruisstraat 2/1
9700 AH Groningen
Netherlands

Piet Rietveld

VU University Amsterdam - Department of Spatial Economics (Deceased)

De Boelelaan 1105
1081HV Amsterdam
Netherlands
+31 20 4446097 (Phone)
+31 20 4446004 (Fax)

Jasper Knockaert

affiliation not provided to SSRN

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