HOW TO GET TO EV MASS ADOPTION

To reassure electric car buyers, combine battery leasing with better charging, study says

January 28, 2015 (PhysOrg)

“…[In] Toward Mass Adoption of Electric Vehicles: Impact of the Range and Resale Anxieties…[researchers offer] two models…[In the first model] battery enhanced charging service is made available through additional support infrastructure…In the second model, consumers lease the batteries and are also offered enhanced battery charging services…[T]heir impacts on electric vehicle adoption can be quite different. While range anxiety typically hurts adoption, resale anxiety can actually help adoption (depending on the EV production cost level)…[A]nxieties do not necessarily harm consumers…[and] typically benefit consumers since the presence of anxieties forces the firm to cut vehicle prices and invest more in public charging infrastructure…The battery leasing service improves the firm's profit at the expense of total adoption and consumer surplus, when not offered with the public charging option…Most importantly, increasing the driving range of electric vehicle through public charging infrastructure typically yields more socially desirable adoption outcomes (greater adoption and emission savings) than increasing the battery capacity…[T]he first model provides the highest benefit (electric vehicle adoption, emission savings, profitability, and consumer surplus) unless resale anxiety is high…” click here for more

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