Fueling Alternatives: Gas Station Choice and the Implications for Electric Charging
This paper estimates an imperfect information discrete choice model of drivers’ refueling preferences and analyzes the implications of these preferences for electric vehicle (EV) adoption. Drivers respond four times more to stations’ long-run average prices than to current prices and value travel time at $27.54/hour. EV adopters with home charging receive $829 per vehicle in benefits from avoiding travel to gas stations, whereas refueling travel and waiting time costs increase by $9,169 for drivers without home charging. Increasing the charging speed of the existing network yields 4.7 times greater time savings than a proportional increase in the number of stations.
We are grateful to MITRE, the U.S. Department of Energy, the Sloan Foundation, and the National Bureau of Economic Research for financial support. We also thank the University of Michigan Transportation Research Institute for data access. Finally, we thank Jean-Francois Houde, Dan Sacks, Shinsuke Tanaka, Matthijs Wildenbeest and seminar participants at University of Arizona, Indiana University, NBER, ASSA, UC Davis, University of Michigan, Northeast Workshop on Energy Policy and Environmental Economics for helpful comments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
I work as an expert witness on various projects for Cornerstone Research, which has clients that include automotive companies. None of these companies provided any financial support for this project or otherwise had any influence over the direction of this research.
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