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Journal ArticleDOI: 10.1080/01605682.2019.1678407

A game-theoretic approach for electric vehicle adoption and policy decisions under different market structures

04 Mar 2021-Journal of the Operational Research Society (Taylor & Francis)-Vol. 72, Iss: 3, pp 594-611
Abstract: The transport sector is one of the largest contributors to rising greenhouse gas (GHG) emissions in the world. With no tailpipe emissions, electric vehicles (EVs) can be one of the ways to reduce G...

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Topics: Electric vehicle (52%), Greenhouse gas (52%), Subsidy (50%)
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Journal ArticleDOI: 10.1016/J.TRD.2021.102695
Haonan He1, Chao Wang1, Shanyong Wang2, Fei Ma1  +2 moreInstitutions (2)
Abstract: The moderating role of consumers’ environmental concern in electric vehicles (EVs) adoption intentions is well established, but the variation between intentions and behaviors leads to the necessity to consider corporate behavior and further evaluate its primary role. This paper constructs a duopoly pricing model and captures consumer heterogeneity in two dimensions to study consumers’ vehicle adoption choices and EV pricing. Counter-intuitively, the results show that environmental concerns may not always stimulate EV sales. Green consumers with environmental concerns enhance EV’s unit profitability, which may induce manufacturers to abandon conventional consumers. Thus, governments should control the phase-out rate of subsidies in markets with more green consumers to mitigate shifts in pricing strategies. Furthermore, by demonstrating the relationship between EV policies, this paper highlights the importance of policy coordination and provides specific strategies. Our findings have broad implications for understanding EV marketing under conditions of customer heterogeneity and cost-effective policy coordination strategies.

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Topics: Pricing strategies (61%), Duopoly (58%)

5 Citations


Open accessJournal ArticleDOI: 10.3390/EN13246613
15 Dec 2020-Energies
Abstract: This study introduces e-mobility for humanitarian purposes and presents the first investigation of innovative e-mobility transport solutions (e.g., e-bike, e-stretcher, and drone) for mountain rescue. In practice, it is largely unclear which e-mobility transport solutions might be suitable and what selection attributes are to be considered. The subsequent study supports the technology selection process by identifying and measuring relevant selection attributes to facilitate the adoption of e-mobility in this domain. For the purpose of this study, a multi-method research approach that combines qualitative and quantitative elements was applied. In the first step, results of a systematic search for attributes in literature were combined with inputs gained from unstructured expert interviews and discussions. The perceived importance of the identified selection attributes was then measured by analyzing survey data of 341 rescue workers using the best-worst scaling methodology. Finally, the results were reiterated in another expert discussion to assess their overall validity. Study results indicate that e-mobility transport solutions need to primarily enhance operational performance and support the safety of mountain rescue personnel. Surprisingly, economic and sustainability aspects are less of an issue in the process of technology selection.

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Topics: Mountain rescue (51%)

3 Citations


Journal ArticleDOI: 10.1016/J.ENERGY.2021.120369
Yi Yu1, Dequn Zhou1, Donglan Zha1, Qunwei Wang1  +1 moreInstitutions (1)
01 Jul 2021-Energy
Abstract: The Chinese government has proposed a dual credit policy (DCP) as a substitute for electric vehicle (EV) subsidies, which fluctuates the auto market. To investigate the policy substitution influences for the production and pricing strategies, we use Stackelberg game paradigms to model a two-stage auto supply chain. The manufacturer regulated by the DCP produces both EV and internal combustion engine vehicles (ICEV). The retailer sells them to heterogeneous consumers. By backward induction, the optimal production and pricing strategies are derived for the subsidy policy only (scenario B) and with a joint subsidy policy and DCP (scenario DS). Our findings show, 1) different with only one case in scenario B, the manufacturer and the retailer have three corresponding optimal production and pricing strategies in scenario DS, according to the manufacturer’s Corporate Average Fuel Consumption credit (CAFC credit); 2) the demand for the ICEV may also decline like EV as the subsidies are phased out in scenario DS when the manufacturer’s CAFC credit is in balance case; 3) the changes of DCP rules may have different effects on the optimal production and pricing strategies in different CAFC cases.

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Topics: Pricing strategies (58%)

3 Citations


Open accessJournal ArticleDOI: 10.3390/IJERPH17165790
Lei Xie1, Hongshuai Han2Institutions (2)
Abstract: Many small manufacturing factories suffer insufficient environment-friendly capacity after eliminating the outdated and environmental-harmful production capacity according to stringent environmental rules and regulations. This paper analyzes two strategies that the manufacturer with limited environment-friendly capacity may take to tackle this problem, i.e., investing in building environment-friendly capacities and collaborating with the manufacturer with sufficient environment-friendly capacity in capacity sharing. In a supply chain with two competing manufacturers, this paper builds game-theoretical models and investigates equilibrium solutions under three scenarios (no capacity investment or sharing, capacity investment, and capacity sharing). Then this research investigates the feasible regions of these two strategies and compares the performance of each manufacturer under each scenario. The findings show that both capacity investment and capacity sharing can effectively reduce the profit loss of the manufacturer with limited capacity, while only capacity sharing benefits both manufacturers. The feasibility of these two strategies depends on the initial capacity volume and the capacity investment cost coefficient of the manufacturer with limited capacity. Moreover, the preference of the manufacturer with limited capacity for each strategy depends on the capacity investment cost coefficient. When the capacity investment cost coefficient is relatively high, the win-win situation exists for supply chain members. Furthermore, with the use of chaos theory, the paper shows how to adjust the capacity investment in each period to keep the system stable.

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Topics: Supply chain (51%)

3 Citations


Journal ArticleDOI: 10.1016/J.TRE.2020.102093
Zhi-Ping Fan1, Yue Cao1, Chun-Yong Huang1, Yongli Li2Institutions (2)
Abstract: This paper investigates the optimal pricing strategies of domestic/imported electric vehicle manufacturer and the government’s optimal decisions by developing the game-theoretic models. The results show that the technology spillover caused by introducing IEVs into domestic markets can affect the profits of electric vehicle manufacturers and the government’s decisions on subsidies and tariffs. In addition, implementing the subsidy and tariff policies can help to improve the profit of the domestic electric vehicle manufacturer and the social welfare. Moreover, when the degree of technology spillover is relatively large, implementing the subsidy and tariff policies can also help to improve the consumer surplus.

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Topics: Tariff (57%), Subsidy (57%), Domestic market (56%) ... read more

3 Citations


References
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46 results found


Journal ArticleDOI: 10.1016/0022-0531(78)90085-6
Michael Mussa1, Sherwin Rosen1Institutions (1)
Topics: Product (category theory) (60%), Quality (business) (58%), Monopoly (57%)

3,080 Citations


Journal ArticleDOI: 10.1016/0022-0531(72)90049-X
W.David Montgomery1Institutions (1)
Abstract: [Introduction] Artificial markets have received some attention as a means of remedying market failure and, in particular, dealing with pollution from various sources. Arrow has demonstrated that when externalities are present in a general equilibrium system, a suitable expansion of the commodity space would lead to Pareto optimality by bringing externalities under the control of the price system. Since his procedure is to define new commodities, each of which is identified by the type of externality, the person who produces it and the person who suffers it, his conclusion is pessimistic. Each market in the newly defined commodities involves but one buyer and one seller, and no forces exist to compel the behavior which would bring about a competitive equilibrium.

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Topics: General equilibrium theory (58%), Competitive equilibrium (57%), Market failure (56%) ... read more

1,640 Citations


Open access
01 Jan 2009-
Topics: Combustion (64%)

1,388 Citations


Journal ArticleDOI: 10.1109/TASE.2012.2203304
Saif Benjaafar1, Yanzhi Li2, Mark S. Daskin3Institutions (3)
Abstract: Using relatively simple and widely used models, we illustrate how carbon emission concerns could be integrated into operational decision-making with regard to procurement, production, and inventory management. We show how, by associating carbon emission parameters with various decision variables, traditional models can be modified to support decision-making that accounts for both cost and carbon footprint. We examine how the values of these parameters as well as the parameters of regulatory emission control policies affect cost and emissions. We use the models to study the extent to which carbon reduction requirements can be addressed by operational adjustments, as an alternative (or a supplement) to costly investments in carbon-reducing technologies. We also use the models to investigate the impact of collaboration among firms within the same supply chain on their costs and carbon emissions and study the incentives firms might have in seeking such cooperation. We provide a series of insights that highlight the impact of operational decisions on carbon emissions and the importance of operational models in evaluating the impact of different regulatory policies and in assessing the benefits of investments in more carbon efficient technologies. Note to Practitioners-Firms worldwide, responding to the threat of government legislation or to concerns raised by their own consumers or shareholders, are undertaking initiatives to reduce their carbon footprint. It is the conventional thinking that such initiatives will require either capital investments or a switch to more expensive sources of energy or input material. In this paper, we show that firms could effectively reduce their carbon emissions without significantly increasing their costs by making only operational adjustments and by collaborating with other members of their supply chain. We describe optimization models that can be used by firms to support operational decision making and supply chain collaboration, while taking into account carbon emissions. We analyze the effect of different emission regulations, including strict emission caps, taxes on emissions, cap-and-offset, and cap-and-trade, on supply chain management decisions. In particular, we show that the presence of emission regulation can significantly increase the value of supply chain collaboration.

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Topics: Carbon footprint (67%), Supply chain (58%), Supply chain management (57%) ... read more

833 Citations


Journal ArticleDOI: 10.1016/J.ENPOL.2014.01.043
01 May 2014-Energy Policy
Abstract: Electric vehicles represent an innovation with the potential to lower greenhouse gas emissions and help mitigate the causes of climate change. However, externalities including the appropriability of knowledge and pollution abatement result in societal/economic benefits that are not incorporated in electric vehicle prices. In order to address resulting market failures, governments have employed a number of policies. We seek to determine the relationship of one such policy instrument (consumer financial incentives) to electric vehicle adoption. Based on existing literature, we identified several additional socio-economic factors that are expected to be influential in determining electric vehicle adoption rates. Using multiple linear regression analysis, we examined the relationship between those variables and 30 national electric vehicle market shares for the year 2012. The model found financial incentives, charging infrastructure, and local presence of production facilities to be significant and positively correlated to a country's electric vehicle market share. Results suggest that of those factors, charging infrastructure was most strongly related to electric vehicle adoption. However, descriptive analysis suggests that neither financial incentives nor charging infrastructure ensure high electric vehicle adoption rates.

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Topics: Electric vehicle (56%), Market share (53%), Order (exchange) (51%)

688 Citations