The impact of car specifications, prices and incentives for battery electric vehicles in Norway: Choices of heterogeneous consumers. (August 2016)

• Record Type: Journal Article
• Authors: Zhang, Yingjie; Qian, Zhen (Sean); Sprei, Frances; Li, Beibei
• Is Part Of: Transportation research. Volume 69(2016)
• Page Start: 386
• Page End: 401
• Publication Date: 2016-08
• Subjects: Electric vehicle -- BLP model -- Incentives -- Heterogeneous consumers; Transportation -- Periodicals; Transportation -- Technological innovations -- Periodicals; 388.011
• DOI: 10.1016/j.trc.2016.06.014
• Languages: English
• ISSNs: 0968-090X

Abstract

Highlights: We examine BEV sales in Norway's municipalities using the BLP model. Significant positive effects of BEV technology, toll waivers and charging station density are found. The effects on business buyers are generally less pronounced than on personal consumers. We find significant heterogeneity in consumer preferences over BEV price and car specifications. Abstract: Electric vehicles (EVs), specifically Battery EVs (BEVs), can offer significant energy and emission savings over internal combustion engine vehicles. Norway has a long history of research and government incentives for BEVs. The BEV market in Norway allows us to fully examine consumers' BEV choices influenced by car specifications, prices and government incentives (public bus lanes access, toll waiver and charging stations). The Random-Coefficient Discrete Choice Model (referred to as the BLP model) is applied to understand the choices of heterogeneous personal consumers and business buyers. Our study is instantiated on the entire EV sales data in Norway from 2011 to 2013, as well as a set of demographics at the municipality level. The results suggest significant positive effects of BEV technology improvement, space, toll waiver and charging station density on EV demand for both personal consumers and business buyers. However, the effects on business buyers may be generally less pronounced than on personal consumers. Interestingly, bus lanes access demonstrates a negative impact for personal consumers, possibly due to consumers' concern regarding bus lane congestion. In addition, preferences on the BEV price can vary statistically among consumers with different income levels. Compared to the BEV technology development, demographical features and municipal incentives may have generally less impacts on market shares within the BEV market.