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H I G H L I G H T S
art ic l e i nf o a b s t r a c t
Article history: In order to increase the attractiveness of electric vehicles (EVs), packages of policy incentives are pro-
Received 9 December 2015 vided in many countries. However, it is still unclear how effective different policy incentives are. Also, it is
Received in revised form questionable that they have the same impact on different groups of people. In this study, based on a
29 March 2016
stated-choice experiment, the effect of several potential policy incentives on EV-adoption, as well as the
Accepted 30 March 2016
Available online 13 April 2016
influence of socio-psychological determinants are investigated, using constructs of the Transtheoretical
Model of Change (TTM) and the Protection Motivation Theory (PMT).
Keywords: The probability of stated EV-adoption increases if policy incentives are offered in the choice ex-
Electric vehicle adoption periment, which is expected because of the decrease of the generalized cost of EV-use. The high stated
Policy incentives
valuation of free parking or access to bus lanes makes those incentives an efficient alternative to ex-
stated-choice
pensive subsidies. EV-adoption probability increases for people that are further in the process of beha-
Transtheoretical Model of Change
Protection Motivation Theory vioural change. However, the responsiveness to subsidies decreases for people in more advanced stages-
of-change. People that believe EVs to be effective in decreasing the negative externalities of the current
transport system and people whose travel patterns can cope with the use of EVs also have a higher
probability to choose the EV.
& 2016 Elsevier Ltd. All rights reserved.
http://dx.doi.org/10.1016/j.enpol.2016.03.050
0301-4215/& 2016 Elsevier Ltd. All rights reserved.
J.H.M. Langbroek et al. / Energy Policy 94 (2016) 94–103 95
while Lin and Greene (2012) investigated the WTP of public 2.1. Taxonomy of policy incentives related to EV-adoption
charging infrastructure, concluding that improvements of home
charging facilities would have a higher value than improvements Policy measures that are taken to make EVs more attractive can
of public charging or charging at the workplace. A study by Lieven be of different kinds (e.g. Sierzchula et al., 2014; Lieven, 2015).
(2015) compares the effects of policy measures in twenty coun- Purchase-based and use-based incentives can be distinguished. An
tries. Moreover, cluster techniques are used in order to distinguish example of a purchase-based policy incentive is a subsidy when
different groups of travellers based on their stated preferences and buying an EV or a tax rebate when registering an EV. Examples of
demographics likely to react differently to policy incentives. use-based policy measures are providing free parking for EVs, al-
Whilst different traveller groups have different preferences, lowing EV-users to make use of bus lanes or to provide an ex-
most policy incentives to make EVs more attractive are directed to emption for congestion charging for EV users. Purchase-based
all car drivers, without any particular group to target. Moreover, incentives decrease the fixed cost of EV-use, while use-based in-
policy incentives will have implications that are likely to differ centives decrease the marginal cost of EV-use. Seen from another
between different categories of car drivers. Considering beha- perspective, policy incentives can be of a local or global kind. Local
vioural change as a process, different car drivers are in different policy incentives such as free parking in a specific city, congestion
stages-of-change towards electric vehicle use. Moreover, they have charge exemptions in a specific city or access to bus lanes are
likely to only influence people who can gain from these location-
different attitudes towards sustainable transport and electric ve-
specific incentives. On the other hand, global policy incentives
hicles in particular and different needs depending on where they
such as national tax rebates (vehicle registration tax or annual
live. All of these aspects may influence EV adoption in general, as
road taxes) or subsidies apply to everyone in a country. The ef-
well as the responsiveness to policy measures.
fectiveness and efficiency of policy incentives, as well as their
In this article, the effects of policy incentives on EV adoption
feasibility and side effects are assumed to depend on the scope
are investigated, in order to evaluate the effectiveness and effi-
and timing of incentives, as described above. In the following
ciency of different possible policy incentives. Socio-psychological
Section, each of these concepts will be shortly described.
constructs from the Transtheoretical Model of Change and the
Protection Motivation Theory, which will be described in Section
2.2. Effectiveness, efficiency, feasibility and side effects of policy
2.2, have been used. Different groups of car drivers have been
incentives
distinguished in order to investigate the probability of EV adoption
for people in different stages-of-change, people having different
It has been shown that policy incentives for EVs in general have
self-efficacy, response-efficacy and willingness to decrease their
a positive effect on EV adoption (Zhang et al., 2011). Policy in-
car use and people that live on a different distance from the city
centives can be considered to be effective if they considerably
centre of Stockholm. increase the probability of buying an electric vehicle. If policy
The hypotheses for this paper are the following: measures do not increase EV adoption, they will only imply a re-
distribution of income. The effectiveness of a policy measure can
Hypothesis 1. Policy incentives have a positive effect on EV
be measured as the difference between the number of EVs sold
adoption.
with a specific policy incentive n1 and the number of EVs sold
Hypothesis 2. People that are further in the process towards be- without that specific policy incentive n0.
havioural change according to the Transtheoretical Model of Bakker and Trip (2013) investigated the effectiveness, efficiency
Change (TTM) are more likely to adopt EVs. and feasibility of different policy measures that can be taken to
stimulate electric vehicle adoption using expert workshops. In this
Hypothesis3. The effects of policy incentives on EV adoption are study, efficiency has been defined as the amount of resources that
different for people in different stages of change. are needed to make one person adopt an EV, which can be vi-
sualized as follows:
Hypothesis 4. People that are motivated to change to EVs are
n1*costpolicymeasureXpersoldcar
more likely to adopt EVs. Efficiency =
n1 − n 0 (1)
Hypothesis 5. The effect of local policy incentives is different for where n1 ¼the number of EVs sold with policy incentive X and n0
people that live in different parts of the region of Stockholm. the number of EVs sold without policy incentive X.
The rest of this paper is structured as follows: In Section 2, the An example: suppose that a subsidy of 40,000 SEK (approxi-
theoretical background is described, followed by the Methodology mately €4300) increases the sale of EVs by 20 per cent from 1500
of this paper in Section 3. In Section 4 an overview is given of the vehicles to 1800 vehicles in a specific year.
Results, followed by the Discussion in Section 5 and Conclusions in The subsidy has to be paid for all sold EVs, and supposing the
marginal cost of public funds equals 1.3, the total cost would equal
Section 6.
93,600,000 SEK ( E€10,090,000). The effect of this incentive is an
increase in the sale of EVs by 300, which implies that the cost is
312,000 SEK ( E€33,600) for each additional vehicle, disregarding
2. Theory the benefits of this re-distribution of income for the receivers of
the subsidy.
In this section, assessment methods of different policy in- Feasibility of policy incentives consists of an evaluation of the
centives, that are used to increase the attractiveness of electric financial, social and political costs of policy measures (Bakker and
vehicles, are discussed. These concepts will be used in the Dis- Trip, 2013). For some measures, it is hard to get political and public
cussion session later on, in the light of the empirical results of this support for implementing this measure, even though they might
study. In Section 2.1, a taxonomy of policy incentives is presented. be very effective and efficient. Another issue pointed out by Bakker
In Section 2.2, different assessment methods of policy incentives and Trip was the task of governments to raise awareness. Many
are described. In Section 2.3, the connections between motivation people are currently not aware of the electric vehicle, its possibi-
and policy incentives are discussed. lities and its limitations, nor of the package of policy incentives
96 J.H.M. Langbroek et al. / Energy Policy 94 (2016) 94–103
that are already considering buying an EV. People who are cur- and their stage-of-change towards electric vehicle use, going from
rently using EVs might have an even higher intrinsic motivation to Pre-contemplation (not having considered to change to EV-use) to
buy a second EV in the future, so that they depend less on policy Maintenance (having at least half a year of driving experience in
incentives. However, the question is whether they are also un- an EV).
equally responsive to policy measures that can be taken in order to When making analyses about EV adoption and the effects of
increase the attractiveness of EVs. More insight into the effects of certain potential policy incentives, the effects of people being in a
policy measures on people that are in different stages-of-change specific stage-of-change have been incorporated in two different
can contribute to more insight into EV adoption strategies. ways: either as case-specific constants or as interaction variables
between policy measures and stage-of-change.
Several Mixed Logit models will be used as an analytical tool,
3. Methodology because those models can account for panel effects due to re-
peated observations.
3.1. Survey design
3.2. Sample description
The respondents for this study have taken part in a stated
choice experiment, which was part of a larger two-stage survey. For this study, the data of a two-stage survey was used. In the
They were asked which vehicle they would like to buy in the fic- first stage, socio-cognitive questions about electric vehicles were
tive situation they were planning to buy a new personal car. One of asked. Beside this behavioural questions including a one-day travel
the vehicles was an electric vehicle and the other vehicle a con- diary and socio-economic questions were asked. In total, 294 re-
ventional vehicle. spondents completed this first part of the survey. The second stage
The attributes that were taken into consideration were the of the survey consisted of stated adaptation questions regarding
range of the car, the price of the car after subsidies, whether there EV adoption and use as well as charging behaviour. The total
was a public charging system available for users, whether EVs can number of respondents who completed both stages is 269. This
park for free or with discount and whether EV drivers are allowed means that more than 90% of the respondents participating in the
to make use of bus lanes. Those attributes were selected in order first stage also participated in the second stage. Because the same
to capture common policy incentives covering different types: respondents were used for both the first and the second wave of
global subsidies reflected in the purchasing price of EVs, local this survey, there is a possibility to link the elements of the survey
parking policy (in Stockholm), local access to bus lanes (in Stock- in different ways.
holm) and a facilitating, local network of charging infrastructure, After participation in both survey stages, the respondent got
whether or not the electricity to charge the car is free. As the range free cinema tickets or a present card and tickets for a 22 h cruise in
of EVs is a fundamental limiting factor, this attribute has been the archipelago of Stockholm.
taken into consideration as well. The respondents that do not use electric vehicles have been
The attributes of the electric vehicle (see Table 1) had attribute selected using stratified random sampling, while the respondents
levels that were composed using an orthogonal fractional factorial that use EVs have been oversampled because of their small part in
design with blocking, as described in Hensher et al. (2005). In the Stockholm population. Respondents were selected to meet a
total, there were nine blocks of three choices to make, so that 27 of set of criteria for the sample regarding the minimum number of
the in total 81 profiles in the according full factorial design were respondents per age groups, per geographic sub-area within the
selected. The conventional car always was the reference car with Greater Stockholm region, per income level and per household
the same attribute level across the study. type. In September 2014, around 300 private EV users were re-
For the analysis design, dummy coding has been used, where gistered in Stockholm's county, and all of these were asked to
attribute level 1 (see Table 1) is always used as the reference at- participate in the survey. Out of 300 EV users, 122 were willing to
tribute. In order to provide the respondents with realistic choice participate in the survey. All respondents are active drivers driving
tasks, the purchasing price of the internal combustion engine ve- a car at least once a week.
hicle (ICEV) is always lower than that of the electric vehicle, while In Table 2, a short sample description is presented. Compared
the range is always higher. Moreover, re-fuelling take much less to the population of Stockholm County, the sample consists of a
time than charging an EV, as explained in the introduction of this larger proportion of men, the sample has a relatively high average
question. The disadvantage of this approach is the fact that not all age (50 years) and a comparatively large proportion of the sample
price- and range effects can be estimated and some of the effects lives in a single family house. Also the income among the sampled
will be hidden in the alternative specific constant, as described by respondents is relatively high, with 40 per cent of the respondents
Mabit and Fosgerau (2011). having a household income over 800,000 SEK (approximately
The respondents that took part in this stated choice experiment €86,000). This is mainly due to the fact that the EV-users in the
have also answered questions related to their attitudes, knowledge sample have an on average higher income and are more likely to
Table 1
Attributes and attribute levels.
Attributes Attribute level 1 (ref.) Attribute level 2 Attribute level 3 Attribute level 4
a
Price level autumn 2014.
b
100 SEK E €10.
98 J.H.M. Langbroek et al. / Energy Policy 94 (2016) 94–103
live in a single family house. Also the division of the respondents Pni = ∫ L ni(β n ′)
*f (β′)dβ′ (4)
over the five stages-of-change (as described in Section 2.3) is
displayed in Table 2. The number of respondents in the Prepara- In this study, the random coefficients are assumed to be nor-
tion stage is very low (8 respondents). mally distributed with mean b and covariance W, resulting in
Pni = ∫ L ni(β n ′)
*φ(β′| b′, W ′′)dβ′. (5)
3.3. Model estimation
As all respondents have made three choices, this study has
According to Lancaster (1966), the utility of a product or service repeated observations. The choices of the same individual might
does not depend on the product or service as such but rather on the be correlated (panel effects). Therefore, the probability of the se-
attributes of this product or service. When making a choice between quence of choices T (going from observation t ¼1 until observation
more different products or services, the attributes are compared and t¼3) of decision maker n are estimated as in Eq. (6):
the attribute levels of those attributes are crucial when making a T
choice between different alternatives. This concept has later been eVnit (β ′n )
L nit (βn ) = ∏
developed in the Random Utility Theory (e.g. Mc Fadden, 1974). Ac- t=1 ∑j ∈ J eVnjt (β ′n ) (6)
cording to this utility maximization framework (e.g. McFadden, 1974),
decision makers are assumed to be rational and try to maximize their By assuming the random coefficients to be normally distributed
utility when making choices. The higher utility a certain alternative is with mean b and covariance W, the probability of observing a
expected to give, the higher the chance that this alternative will be sequence of choices T for decision maker n is:
chosen by the decision maker. As the electric vehicle is an alternative T
that is often surrounded by a policy framework interfering with the Pni = ∫ ∏ L nit (β′)*φ(β′| b′, W ′′)dβ′.
generalized cost of EV-use, not only the core product-the vehicle itself- t=1 (7)
is assumed to provide utility, but supporting services and government For the models testing Hypothesis 1 until 5, different config-
incentives as well. In this study, the focus is on government incentives urations of Mixed Logit models with random coefficients and pa-
and their influence on EV-adoption. nel effects have been estimated, the effects of which are presented
Based on the utility maximization framework (e.g. Koppelman in Section 4. As a rule, only random coefficients with a statistically
and Bhat, 2006), the utility of an alternative i (Ui) consists of a significant (α ¼0.10) standard deviation have been incorporated as
systematic part Vi and an error term ε , where the systematic part random coefficients as a trade-off between information and the
consists of a vector of attributes a (e.g. price) with attribute values aim of a parsimonious model.
Xia (e.g. 400,000 SEK) for a given alternative i, and their marginal As the integral of Eq. 5 does not have a closed form, the
effect on utility βia and an Alternative Specific Constant ASC that probabilities Pni are approximated by simulation, making use of
captures systematic but non-explained variability in the data (see the distribution of the random parameters f(β). For up to 10 ran-
Eq. (2)). dom parameters, 100 scrambled Halton sequences have been
Ui = Vi + εwhereVi = β′i X ′i + ASCi (2) drawn as described in Bhat (2003).
Table 3 Table 5
Description of Model 1 – Model 5. Coefficients and statistical tests for Model 2.
Model 2 Policy incentives, stage-of-change and EV-adoption Alternative specific constant 11.036 3.644 0.000
Model 3 and 4 Stage specific effects of policy incentives electric vehicle
Model 5 Policy incentives, Protection Motivation and EV-adoption Contemplation 1.103 1.727 0.084
Preparation 3.903 2.568 0.010
Action 3.855 4.462 0.000
Maintenance 4.344 5.181 0.000
Table 4 Free parking 1.770 4.263 0.000 47,442
Coefficients and statistical tests for Model 1. 50% discount on parking 0.743 2.037 0.042 19,917
Access bus lanes Stockholm 1.200 2.746 0.006 32,159
Model 1 Estimates t-value p-value WTP (SEK) County
Use of bus lanes permitted out- 0.904 2.521 0.012 24,239
Alternative specific constant elec- 14.431 4.157 0.000 side the city
tric vehicle Free Charging 1.456 3.607 0.000 38,826
Free parking 1.782 3.985 0.000 52,556 Paid Charging 0.935 2.469 0.014 25,057
50% discount on parking 0.675 1.801 0.072 19,917 Range 0.018 3.976 0.000 485
Access bus lanes Stockholm 1.053 2.264 0.024 31,069 Price 0.039 6.623 0.000
County Std deviation Price 0.006 1.083 0.279
Use of bus lanes permitted out- 0.881 2.385 0.017 25,990 Std deviation Range 0.004 4.020 0.000
side the city Std deviation Free Charging 1.933 2.743 0.006
Free Charging 1.544 3.413 0.000 45,149 Std deviation Individual 1.031 2.718 0.007
Paid Charging 1.036 2.644 0.008 30,549 Values
Range 0.020 3.964 0.000 585 Log-likelihood 404.242
Price 0.039 5.641 0.000 Log-likelihood null model 559.370
Std deviation Price 0.013 2.154 0.031 Mc Fadden’s rho square 0.277
Std deviation Range 0.005 5.935 0.000 Adjusted McFadden’s rho square 0.247
Std deviation Free Charging 1.867 2.052 0.040 # iterations 248
Std deviation Individual 0.414 1.077 0.281
Values
Log-likelihood 433.66
Log-likelihood null model 559.370
Mc Fadden's rho square 0.225
Model 1 has a Mc Fadden's rho square value of 0.225 and has a
Adjusted McFadden's rho square 0.201 significantly higher explanatory power than the null model (LL
# iterations 166 Ratio test, p-value ¼0.000).
Table 6
Coefficients and statistical tests for Model 3.
of the high number of parameters, the adjusted McFadden's rho Price -sensitivity
square value of Model 3 is considerably lower than that of Model 0.000
-0.005
2.
-0.010
Even though not all stage-specific coefficients are significantly
Marginal utility
-0.015
different from zero, there are hardly any coefficients within a -0.020
specific attribute that are significantly different from each other (t- -0.025
-0.030
test for equality of parameters). This means that there is no evi-
-0.035
dence for stage-specific coefficients. An exception is price, where -0.040
many coefficients are statistically significantly different from each -0.045
-0.050
other. Therefore, a reduced model has been made with only stage- Pre -
Contemplation Preparation Action Maintenance
contemplation
specific price effects (see Table 7). Price -sensitivity -0.044 -0.040 -0.034 -0.032 -0.031
According to Model 4, the effect of price on EV-adoption di-
Fig. 2. Price-sensitivity for people in different stages of change (according to Model 4).
minishes with stage-of-change. This means that people that are in
Table 7
a more advanced stage-of-change are less price-sensitive towards
Coefficients and statistical tests for Model 4. price (see Fig. 2).
There are significant differences between six pairs of stage-
Model 4 Estimates t-value p-value specific price-coefficients (t-test for equality of parameters),
ASC 21.372 5.284 0.000
namely between the price-coefficient of people in the pre-con-
Free parking 1.663 4.347 0.000 templation stage and the coefficient of people in all four other
50% discount on parking 0.797 2.25 0.024 stages, as well as between the price-coefficient of people in the
Access bus lanes Stockholm County 1.103 2.636 0.008 contemplation stage and the price-coefficient of people in the
Use of bus lanes permitted outside the city 0.83 2.418 0.016
action and maintenance stage. In this model, the price-sensitivity
Free Charging 0.86 2.405 0.016
Paid Charging 0.016 3.752 0.000 is ever decreasing.
Range 1.325 3.319 0.001
Price Pre-contemplation 0.044 6.367 0.000 4.3. Socio-psychological determinants and EV adoption
Price Contemplation 0.04 6.64 0.000
Price Preparation 0.034 5.535 0.000
Price Action 0.032 5.745 0.000 In an earlier study, a connection was found between socio-
Price Maintenance 0.031 5.806 0.000 cognitive constructs from the Protection Motivation Theory and
Std deviation Price Pre-contemplation 0.002 1.515 0.130 being in a certain stage-of-change (Langbroek et al., 2015a). Stage-
Std deviation Price Contemplation 1.632 2.044 0.041
of-change has an influence on EV-adoption, where, controlled for
Std deviation Price Preparation 0.008 1.839 0.066
Std deviation Price Action 0.003 0.693 0.488 policy attributes in the stated choice experiment, people in more
Std deviation Price Maintenance 0.001 0.301 0.763 advanced stages-of-change are more likely to purchase an electric
Std deviation Range 0.007 2.253 0.024 vehicle rather than a conventional vehicle.
Std deviation Free Charging 0.005 1.707 0.088
For Model 5, the tested hypothesis was that constructs of the
Std deviation Individual 1.146 2.585 0.010
Values Protection Motivation Theory (threat appraisal, self-efficacy and
Log-likelihood 403.883 response efficacy) have an influence on EV-adoption. The electric
Log-likelihood null model 559.370 vehicle, able to decrease some of the environmental and health
Mc Fadden's rho square 0.278 problems that are related to the current transport system, is more
Adjusted McFadden's rho square 0.240
# Iterations 238
likely to be embraced in case people believe that the current
transport system is a danger for the environment (threat
J.H.M. Langbroek et al. / Energy Policy 94 (2016) 94–103 101
Table 8 Table 9
Coefficients and statistical tests for Model 5. Comparison of nested models.
Model 5 Estimates t-value p-value Restricted Unrestricted LL-Ratio Degrees Critical Critical p-value
model model of free- value value
ASC 16.330 4.265 0.000 dom α¼ 0.05 α ¼0.01
Threat appraisal (min ¼1; max ¼7) 0.007 0.041 0.967
Self-efficacy (min ¼1; max¼ 7) 0.427 1.773 0.076 Model 1 Model 2 58.836 4 9.49 13.28 o0.01
Response efficacy (min ¼ 1; max ¼ 7) 0.388 1.884 0.060 Model 1 Model 4 59.554 8 15.51 20.09 o0.01
Free parking 1.662 4.429 0.000 Model 1 Model 5 71.278 11 19.68 24.72 o0.01
50% discount on parking 0.812 2.339 0.019 Model 4 Model 5 11.724 3 7.81 11.34 o0.01
Access bus lanes Stockholm County 0.956 2.394 0.017
Use of bus lanes permitted outside the city 0.798 2.407 0.016
Free Charging 1.288 3.487 0.000
explanatory power of the model as compared to Model 1. The
Paid Charging 0.966 2.707 0.007
Range 0.016 3.756 0.000 Likelihood Ratio values for both alternative approaches are very
Price Pre-contemplation 0.041 6.334 0.000 comparable; however including stage-specific price effects pro-
Price Contemplation 0.038 6.624 0.000 vides more information. An additional significant improvement
Price Preparation 0.034 5.532 0.000 can be made by including constructs from the Protection Motiva-
Price Action 0.032 5.901 0.000
Price Maintenance 0.031 6.058 0.000
tion Theory, that provide a significant improvement also after
Std deviation Price Pre-contemplation 0.007 2.021 0.043 stage-of-change specific price effects has been accounted for.
Std deviation Price Contemplation 0.001 0.392 0.695
Std deviation Price Preparation 0.000 0.026 0.980
Std deviation Price Action 0.006 2.205 0.027
5. Discussion
Std deviation Price Maintenance 0.002 0.614 0.539
Std deviation Range 0.004 5.790 0.000
Std deviation Free Charging 1.361 1.536 0.125 5.1. Effectiveness and efficiency
Std deviation Individual 0.027 0.045 0.964
Values Most incentives in the model significantly increase the prob-
Log-likelihood 398.021
Log-likelihood null model 559.370
ability of choosing an EV in this hypothetical setting. This was
Mc Fadden’s rho square 0.288 expected, because the generalized cost of EV-use is decreased by
Adjusted McFadden’s rho square 0.246 all of these policy incentives.
# Iterations 257 Also the hypothesis that people who are further in the process
of behavioural change (in a more advanced stage-of-change) are
more likely to choose EVs, given the provided policy package, has
appraisal), the EV has the potential to decrease the environmental been confirmed in this study. There is a non-linear positive re-
problems and health issues related to personal transport (response lationship between stage-of-change and EV adoption, controlled
efficacy) and in case people believe that they are able to satisfy for policy measures. This implies a different level of effectiveness
their travel needs with an electric vehicle rather than a conven- and efficiency of policy incentives, depending on how far people
tional vehicle (self-efficacy). When including the variables threat are in the process of behavioural change towards electric vehicle
appraisal, response efficacy and self-efficacy in the discrete choice use. The decreased price-sensitivity for people in further stages of
models that have been estimated above, there is a statistically change indicates that subsidization is less effective and therefore
significant and positive effect of response efficacy and self-efficacy less efficient for people in more advanced stages-of-change. Giving
on EV adoption (see Table 8). Threat appraisal does not have a one additional unit of subsidies to this group does not increase
significant effect on EV-adoption. their utility equally much as giving one additional unit of subsidies
to pre-contemplators. The other side of the coin is the fact that
4.4. Socio-economic characteristics and EV adoption they have a higher intrinsic motivation to purchase EVs and for
this group, the gap between the utility of conventional cars and
The explanatory power of the choice models that have been the utility of electric vehicles is smaller. The same holds for people
fitted does not increase by including socio-economic character- with a high response-efficacy towards electric vehicles and a high
istics such as gender, age, income, education level or mileage. self-efficacy.
Possibly, there is an indirect effect through the statistically sig- Ironically, if people would elicit whether they have a high
nificant attitudinal variables. Also the distance from the home Protection Motivation or whether they already consider changing
location to the city centre of Stockholm does not have a significant to EV use, governments could respond by decreasing the policy
effect on the uptake of EVs, nor on the effects of local policy incentives for this group and increase the efficiency of their EV
measures such as free parking and access to bus lanes. This has promoting policy.
been tested using a model with interaction effects between dis-
tance and certain policy incentives. The only socio-economic 5.2. Side effects
variable that has a statistically significant effect on EV adoption in
case stage-of-change has not been included deals with living in a Another argument for studying policy measures taken to in-
single-family house. crease the attractiveness of EVs is the presence of side effects that
can occur because of some policy measures taken. Side effects of
4.5. Comparison of model results policy incentives should be incorporated in an assessment of the
effectiveness of policy measures, as proposed by Givoni et al.
Model 1 is a restricted version of model 2, 4 and 5, while model (2013), which might make a case for including EV-policy in a
4 is a restricted version of model 5. Therefore, Likelihood Ratio broader “policy package” that does not only consider EV-adoption
Tests have been performed, the results of which are listed in but which takes potential rebound effects into account as well.
Table 9. Local incentives such as access to bus lanes or decreased parking
Both Model 2 and Model 4, incorporating stage-of-change ei- costs infer with the variable costs of EV-use rather than with the
ther as a dummy variable or as a specific price-effect, improve the fixed costs and might influence travel behaviour patterns. For
102 J.H.M. Langbroek et al. / Energy Policy 94 (2016) 94–103
example, free parking decreases the marginal costs of EV use, bus lanes or to provide free parking. Bus lanes and parking tariffs
which are already naturally lower than the marginal costs of were originally meant to cope with excess demand on the road
conventional car use. Electricity is per unit cheaper than fossil network and on the “parking market”, thus providing road and
fuels and moreover, the engine of EVs is more efficient than the parking space for free to a part of the vehicles which is increasing
internal combustion engine, especially in urban areas where the is no sustainable option. On the other hand, if governments pro-
driving conditions imply a lot of braking and acceleration. This vide use-benefits, those policy incentives should be consistent
characteristic is advantageous for people that want to purchase over time in order to be credible and effective (White et al., 2013).
electric vehicles so they can in that way be compensated for the When making an investment, it is important for investors to
higher purchasing costs of these vehicles. However, lower mar- predict which policy measures will be taken in the future years
ginal costs of car driving might increase car driving, within the and whether current policy measures will still be in place in the
bandwidth of the available range of EVs (Langbroek et al., 2015b). future. When buying an electric vehicle, it is very important to
Bakker and Trip (2013) remarked that parking should not be free know how far into the future these use-benefits are going to stay.
because of the fact that free parking might increase the relative In this stated choice experiment, the policy measures have no end
attractiveness of the car over alternative travel modes. date, but if the government could only guarantee free parking or
Local, use-benefits that decrease the marginal cost of EV-use access to bus lanes the first year after purchase and announce that
can have a self-selection of a stimulus effect. A self-selection effect the benefit “might” stay for a longer time, the credibility and thus
would imply that people that pay a lot of parking fees are more the effectiveness of these incentives would be likely to go down.
inclined to switch to EVs if they get free parking in the city centre, Use-benefits have been found to have relatively high discount
so this policy measure targets a specific group of travellers. Tar- rates of 10–30 per cent (Greene et al., 2005).
geting at urban travellers would imply targeting in such a way that Seen from another perspective, crowding can make policy in-
the health effects are assumed to be larger. However, no effect of centives less attractive even though they are still in place. For
distance from the home location to the city centre of Stockholm on example, it has been observed that in Oslo, bus transport was af-
EV adoption has been found. A stimulus effect on the other hand fected by delays because of the high number of electric vehicles
would imply that increased EV-use is stimulated by use-benefits. making use of bus lanes (Meldalen, 2015). Crowding on bus lanes
In order to catch the highest possible amount of benefits, EV dri- decreases the time that can be saved in transport, and may
vers should drive as much as they can, park in central areas as therefore decrease the effectiveness of this policy incentive. The
much as they can and make use of bus lanes as much as they can. same counts for crowding if a limited number of free parking
All policy incentives that decrease the generalized cost of EV- places is offered.
use consist of a re-distribution of income. As the current EV-users In order to be effective, use-benefits must thus be in place
are on average wealthier than non EV-users, attention should be during a certain amount of time. During this period, the new travel
given to the equity effects of providing incentives such as subsidies behaviour that arises because of switching from an ICEV to an EV
to EV-users. becomes stable and travel habits are formed (Verplanken and
Wood, 2006). The question is how easily these changes in travel
5.3. Efficiency versus side effects habits, that are not necessarily beneficial for a sustainable trans-
port system, can be changed again when use-benefits are gradu-
Efficiency and avoiding side effects might be conflicting policy ally decreased and eventually vanished.
goals. Alternative, local policy incentives (parking/bus lane access
and charging) have a value that is higher than the current sub- 5.5. Limitations and further research
sidies in Sweden. For example, free parking has a WTP of around
50,000 SEK or €5400 and access to bus lanes 30,000 SEK (or This study is based on a sample with an over-representation of
€3200). From a cost point of view, a policy packages consisting of electric vehicle users, which are found to be more likely to adopt
local policy incentives might be tempting, because there is no high an electric vehicle in this hypothetical situation. By incorporating
upfront subsidy but rather some lost parking revenues spread out stage-of-change and socio-cognitive determinants in the model-
over some years and maybe some adaptations at signalized in- ling framework, this over-representation has been partially con-
tersections to recognize electric vehicles making use of bus lanes. trolled for. In general, stated choice experiments have the limita-
When considering the effects on EV adoption, these policy mea- tion that they reflect hypothetical decision making, which might
sures are especially effective for people in the pre-contemplation not necessarily reflect real behaviour. However, the possibilities for
and contemplation stages. However, these incentives decrease the revealed preference studies focussing on policy and EV-adoption
marginal cost of EV trips, thereby increasing the number of trips. are likely to be limited to general comparative studies across dif-
For EV users it might make sense to drive, make use of bus lanes ferent countries with different policy packages being offered.
and park for free in the city centre rather than taking public Another important issue is the fact that the respondents have
transport. been recruited within Greater Stockholm. This implies that the
As local policy incentives decrease the marginal cost of EV-use results cannot be generalized to other areas.
rather than their fixed cost, those policy measures are of little help As described above, the value of local, use-based policy in-
for the group of car buyers that can currently not afford to buy an centives depends on the travel context of the traveller. Travellers
EV. On the other hand, they stimulate EV-use by decreasing the in congested areas can gain much from being allowed to make use
absolute marginal cost as well as the marginal cost relative to of bus lanes. Travellers in areas with severe parking problems or
other transport modes. Within the range limitations of EVs, EV high parking tariffs can gain much from the allowance to park for
trips will be more attractive than other transport modes. free or to park at designated parking places. In future studies, re-
spondents from different types of areas (urban areas with different
5.4. Expected tenure of policy incentives level of congestion or less densely populated areas) should be
studied. The current hypothesis is that use-based policy incentives
Certainly, policy incentives being taken are not going to be in that are most effective are probably also having most side effects.
place forever and are meant to be in place as long as the electric The results of this study reflect the Willingness to Pay for policy
vehicle market is not able to function on its own. In case many incentives in a certain context. In this case, the context is Stock-
people switch to EVs, it is not viable to keep on giving access to holm with a relatively restrictive parking policy and a rather high
J.H.M. Langbroek et al. / Energy Policy 94 (2016) 94–103 103