The impact of federal incentives on the adoption of hybrid electric vehicles in the United States

Jenn, Alan; Azevedo, Inês L.; Ferreira, Pedro

doi:10.1016/j.eneco.2013.07.025

Cited by 126 publications

(57 citation statements)

References 11 publications

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“…Aghion et al (2012) show that the auto industry innovates more in clean technologies when fuel prices are higher. Jenn et al (2013) determine that incentives are only effective when the amount is sufficiently large. For plug-in electric cars, Sierzchula et al (2014) argue that financial incentives, charging infrastructure, and local presence of production facilities are strongly correlated with electric vehicle adoption rates across different countries.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Demand Uncertainty on Consumer Subsidies for Green Technology Adoption

2014

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This paper studies government subsidies for green technology adoption while considering the manufacturing industry's response. Government subsidies offered directly to consumers impact the supplier's production and pricing decisions. Our analysis expands the current understanding of the price-setting newsvendor model, incorporating the external influence from the government who is now an additional player in the system. We quantify how demand uncertainty impacts the various players (government, industry and consumers) when designing policies. We further show that for convex demand functions, an increase in demand uncertainty leads to higher production quantities and lower prices, resulting in lower profits for the supplier. With this in mind, one could expect consumer surplus to increase with uncertainty. In fact, we show this is not always the case and the uncertainty impact on consumer surplus depends on the trade-off between lower prices and the possibility of under-serving customers with high valuations. We also show that when policy makers such as governments ignore demand uncertainty when designing consumer subsidies, they can significantly miss the desired adoption target level. From a coordination perspective, we demonstrate that the decentralized decisions are also optimal for a central planner managing jointly the supplier and the government. As a result, subsidies provide a coordination mechanism.

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Section: Literature Reviewmentioning

confidence: 99%

The Impact of Demand Uncertainty on Consumer Subsidies for Green Technology Adoption

2014

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“…Jenn [19] It is found that the act increased the sales of HEVs in the U.S. Diamond [20] tested the relationship between HEV adoption and a variety of variables based on the hybrid registration data from different states, which suggested that gasoline prices, not incentive policies, were more closely related to EV adoption. Krause [21] found that misperception about available policies and incentives, not incentives themselves, affects the commercialization of EVs according to the survey of 21 cities in America.…”

Section: The Research Status and Layoutmentioning

confidence: 99%

Policy Incentives for the Adoption of Electric Vehicles across Countries

et al. 2014

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Electric vehicles (EVs) have prominent advantages for reducing CO2 emissions and alleviating the dependence on fossil fuel consumption in the transport sector. Therefore, many countries have set targets for EV development in recent years and have employed a number of policies to achieve environmental objectives and alleviate the energy pressure. Despite the fact that the adoption of EVs has increased in the past few years, more policies, such as financial incentives, technology support or charging infrastructure, should be made by governments to promote broader range use of EVs. In this paper, we review the relevant policies that different countries may adopt for stimulating the market of EVs. Based on this, we analyze the relationship between the policies and the adoption of EVs by taking America as an example. In conclusion, some effective policies are summarized to spur the market. Therefore, each country should learn from each other and employ effective policies based on the actual situation.

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“…Plug-in hybrid vehicles are estimated to have the highest average annual growth rate at 23.2% between 2011 and 2040 followed by battery electric vehicles (17.9%) and hybrid vehicles (5.8%) (EIA, 2013). Hybrid vehicles have been increasing their market share since 2004 with the Toyota Prius being responsible for the majority of sales (Jenn et al, 2013). Plug-in hybrid and battery electric vehicles were introduced to the market in 2011 but are forecasted to grow in the future (EIA, 2013).…”

Section: Introductionmentioning

confidence: 99%

Effects of providing total cost of ownership information on consumers’ intent to purchase a hybrid or plug-in electric vehicle

Dumortier

Siddiki

Carley

et al. 2015

Transportation Research Part A: Policy and Practice

121

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Energy-saving technologies have a difficult time being widely accepted and consumed in the marketplace when they have a high initial purchase price and deferred financial benefits. Consumers might not realize that, in the long-run, the financial benefits from reduced energy consumption offset much or all of the initial price premium. One strategy to address consumer misconception of this advantage is to supply information on the "total cost of ownership", a metric which accounts for the purchase price, the cost of the fuel, and other costs over the ownership period. In this article, we investigate how providing information on fiveyear fuel cost savings and total cost of ownership affects the stated preferences of consumers to purchase a gasoline, hybrid, plug-in hybrid, or battery electric vehicle. Through an online survey with an embedded experimental design using two distinct labels, we find that respondent rankings of vehicles are unaffected by information on five-year fuel cost savings only. However, adding information about total cost of ownership increases the probability that small/mid-sized car consumers express a preference to acquire a hybrid, plugin hybrid, or a battery-electric vehicle. No such effect is found for consumers of small sport utility vehicles. Our results are consistent with other findings in similar behavioral economics investigations on this topic and suggest that further evaluation of the effects of providing consumers with information on the total cost of ownership is warranted.

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The impact of federal incentives on the adoption of hybrid electric vehicles in the United States

Cited by 126 publications

References 11 publications

The Impact of Demand Uncertainty on Consumer Subsidies for Green Technology Adoption

The Impact of Demand Uncertainty on Consumer Subsidies for Green Technology Adoption

Policy Incentives for the Adoption of Electric Vehicles across Countries

Effects of providing total cost of ownership information on consumers’ intent to purchase a hybrid or plug-in electric vehicle

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