Working Paper Sustainability and Innovation No. S 4/2014: Patrick Plötz Till Gnann Martin Wietschel
Working Paper Sustainability and Innovation No. S 4/2014: Patrick Plötz Till Gnann Martin Wietschel
No. S 4/2014
Patrick Plötz
Till Gnann
Martin Wietschel
5 Summary 25
1 Modelling Market Diffusion of EVs with Real World Driving Data
1 Introduction
Global warming and the increase of greenhouse gas (GHG) emissions are some
of the most fundamental challenges of the 21st century [1, 2]. Especially the
transport sector with a growing number of vehicles worldwide has to make
a contribution to reduce GHG emissions radically. Furthermore, the scarcity
of conventional energy resources, in particular crude oil, requires new energy
carriers in the transport sector. Electric vehicles (EVs) such as battery (BEV),
plug-in hybrid (PHEV) or range extended EVs (REEV) are a means to this
problem since they are more energy efficient than conventional cars and produce
less GHG emissions when renewable energy is used [2].
There are several studies and models describing the introduction and mar-
ket diffusion of EVs and studying the effect of policies stimulating EV market
diffusion. Most of these studies focus on average driving patters [3, 4, 5, 6,
7, 8, 9, 10, 11, 12]. This could give incorrect results, since individual driving
patterns show great variations both between different users as well as between
different days for individual users [13, 14]. This is of particular relevance for
electric vehicles for which range limitations and electric driving shares have a
high impact on the economic evaluation and consumer acceptance. Addition-
ally, these studies often focus only on private cars and neglect that commercial
buyers have a relevant market share on selling figures of new vehicles. Their
purchase decision is also different, e.g. the cost-effectiveness is more important
for fleet applications than for private buyers. Furthermore, the average vehicle
kilometres travelled (VKT) of commercial car users are much higher than of
private car users.
The present paper attempts to elaborate and assess a reliable, user-specific
model for market diffusion of EVs and the evaluation of policies influencing
EV market diffusion. User-specific in the sense that all relevant buyer groups
are represented with their specific purchase behaviour and individual driving
patterns. The developed multi agent-based simulation model is applied to and
evaluated for Germany with a time horizon until 2020.
In the following section 2 an overview of existing models for EV market
diffusion is given, motivating the development of a new model. In section 3
the simulation model is described including a critical discussion of the model.
Selected results and different model validations are presented in section 4. In
the final section 5 a summary and conclusions are given. A further application
of the model with different market diffusion scenarios for Germany until 2020
will be developed in [15].
Given the current market shares of EVs, the vast majority of users has never
experienced an EV and can hardly judge its utility. For example, in trying
to predict the utility of a new mode of transport by discrete choice methods,
reference [29, p. 177] concludes that the use-value of attributes of a new mode
cannot be estimated from the existing modes if the the former exhibits some
important attributes which none of the old ones has. This is certainly the case
for EVs and pinpoints the limitations of consumer choice models for EV market
diffusion when they are based on surveys with users of conventional vehicles.
In summary, agent-based models offer the possibility to include several as-
pects of great relevance for the market diffusion of EVs: individual purchase
preferences, individual driving behaviour (to account for the limited range of EVs
and the vehicle kilometres travelled (VKT) related usage costs), the need for fre-
quent recharging and infrastructure as well as the limited choice of EV brands
and models. In the model proposed here and coined ALADIN (Alternative
Automobiles Diffusion and Infrastructure) we explicitly take these factors into
account in an agent-based model with different user groups and their individual
decision making processes.
Figure 1: Criteria ranked first in the decision making process for private pas-
senger car purchase differentiated by vehicle size. Figure is based on data from
[30].
costs strongly depend on the annual VKT and the individual driving pattern,
in particular the regularity of driving. For a reliable estimate, each user’s driv-
ing profile is simulated as a vehicle with each of the propulsion systems (BEV,
REEV, PHEV, diesel and gasoline) and the resulting fuel costs are calculated.
Fuel type, emission standards and acceleration are different for conventional
internal combustion engine vehicles and electric vehicles. Furthermore, many
consumers are willing to pay a price premium for a new technology [32] in
general and for EVs in particular [33, 34]. The positive factors of EVs such
as reduced noise, dynamic driving experience, their novelty and innovativeness
are integrated in the model proposed here as willingness-to-pay-more (WTPM)
of some users. Other factors are difficult to model and are assumed to be
comparable between conventional and electric vehicles, such as design, safety
and engine power.
Apart from the positive image of EVs as a new technology, EVs show certain
limitations. One important factor is the need of frequent recharging caused by
the limited electric range of EVs [35, 36]. To address this issue, we integrate
the cost for the primary charging option into the individual buying decision. In
addition to this, the choice of EVs in terms of brands and models as offered by
manufacturers is still limited and likely to remain so for the next years. This will
certainly restrain some users from buying an EV despite their potential benefits.
We include this effect of a limited choice of brands into our EV market diffusion
model by a two-step process: First, we assume users to stick to their current
vehicle brand if possible. Second, if an EV would maximise the user’s individual
utility but is not available from his current manufacturer, then a share of users
(depending on the number of brands offering EVs in that year) is assumed to
choose an EV from another manufacturer and the rest of the users are assumed
5 Modelling Market Diffusion of EVs with Real World Driving Data
The whole model is based on driving profiles which are analysed in the EV
simulation. Here and in the following, a driving profile is defined as all trips
of an individual vehicle including the departure and arrival time as well as the
Modelling Market Diffusion of EVs with Real World Driving Data 6
Figure 2: Overview of the proposed model for the market diffusion of electric
vehicles using real-world driving data. Based on individual driving data from pri-
vate, commercial and company cars (left panel) and using techno-economical
parameters (right panel), the market shares of different propulsion technolo-
gies are determined in three steps (central panel): (1) each driving profile is
simulated as EV and conventional vehicle; (2) based on the TCO, the cost for
home charging, the limited choice of EV makes and models and the individual
willingness-to-pay-more the utility maximising vehicle option is chosen for each
driving profile; (3) the vehicle choices are extrapolated to market shares and
aggregated to a vehicle stock.
distance travelled together with information about the purpose of the trip (to
work, to home, leisure, shopping, other) and additional information on the
vehicle (size, brand, age, annual VKT) and its owner. For private car owners and
company cars, we use the German Mobility Panel [38] which has already been
used for EV analyses (see e.g. [28, 39, 40]). For commercial users we use the
REM2030 Driving Profiles collected by the authors with GPS trackers [41]. Both
data sets are described in detail in [28, 42] and are publicly available. We use
these datasets as they cover observations of at least one week, which is crucial
for reliable estimates of a vehicle driving behaviour, in particular for EVs (see
[28, 43, 44] and section 4.3). The additional information for the private driving
profiles (including company cars) contains also socio-economic data about the
car owner (age, education, sex, income, city size of residence, typical over-night
parking spot, household size). Similarly, the commercial driving data contains
additional information about the company (no. of employees, city size of head
quarter location, total number of vehicles in fleet).
7 Modelling Market Diffusion of EVs with Real World Driving Data
Willingness-to-pay-more
Table 2: Groups of private users and their willingness to pay more (WTPM).
The numerical values for the WTPM are median values of the group members’
answers.
Techno-economical Parameters
The different modelling steps require assumptions for techno-economical param-
eters concerning the vehicles (retail prices, specific fuel consumptions, battery
sizes and depth-of-discharges (DoD)) as well as the car market (annual sales
per segment (small, medium, large, LDV) and user group (private, commercial,
company car) and age-dependent scrapping probabilities) and framework con-
ditions (fuel, electricity and battery prices). Since the purpose of the present
paper is to introduce and discuss our model, the individual techno-economical
parameters are needed. However, for later use in section 4.3, we summarise
the assumed battery sizes, DoDs and energy consumptions of the vehicle types
considering here in table 3. The battery sizes and DoDs have been developed
in cooperation with the major German car manufacturers [57, 31] and the fuel
consumptions are based on [58].
the model steps (the EV simulation and TCO calculation) have been published
already [28, 33, 34, 59, 60] but the other parts and the combination to an EV
market diffusion model are new. The first step of the model is simulate each
vehicle with its individual driving profile as EV. Based on this vehicle simulation,
the utility for each user of their vehicle with each propulsion technology is
calculated individually. Finally, the individual utility-maximizing decisions are
aggregated to vehicle sales in a stock model.
3.3.1 EV simulation
With the driving profiles described above we simulate the state of charge (SOC)
of a battery for a specific point in time t for each user as
{
SOC(t) − d∆t · ce d∆t > 0
SOC(t + ∆t) = for (1)
min{SOC(t) + ∆t · Ploct , C · DoD} d∆t = 0.
where the battery with capacity C and depth of discharge DoD is initially fully
charged SOC(0) = C · DoD. Here SOC(t) denotes the state of charge at time t.
The distance driven between t and t + ∆t is given by d∆t . The consumption of
electricity in kWh/km depends on the car size and is denoted as ce . Furthermore,
Ploct in kW describes the power for charging at the location where the car
was parked at t. If no charging infrastructure is available, Ploct = 0. Note
that different battery capacities are used in the simulation for different vehicle
sizes and EV types (cf. Table 3). If the car is driven (d∆t > 0), the battery
is discharged by the energy needed for driving the distance d∆t . Otherwise
(d∆t = 0), it is charged with the power Ploct for the time ∆t if necessary and
Modelling Market Diffusion of EVs with Real World Driving Data 10
charging infrastructure is available (Ploct > 0). In the simulation, no fixed step
width ∆t is used, but the result of each individual trip with its trip duration ∆t
or the parking duration ∆t are used.
We analyse each driving profile by simulating a battery profile by Eq. (1)
to estimate the technical EV potential. This technical EV potential delineates
whether a BEV would be able to cover the whole driving profile with a fixed
battery size or, in the case of a hybrid vehicle (REEV, PHEV), what electric
driving share si user i would achieve (cf. [28] for details and section 4.3 for
results). Furthermore, a simulated SOC < 0 for a BEV indicates that at least
one trip (or one chain of trips without charging infrastructure at intermediate
parking spots) of the simulated driving profile was longer than the electric driving
range of the BEV. The latter means that the particular driving profile cannot
be driven with a BEV. All technical parameters for the EV battery simulation
which will be used in section 4, are given in Table 3.
As mentioned before, EVs are charged when charging infrastructure is avail-
able at a parking position. The driving profiles contain information on the
purposes of the trips but not their exact location. Hence, we also have to de-
fine scenarios for charging infrastructure (see [28, 42] for details on charging
infrastructure scenarios). In the following, we assume: (1) PHEVs and REEVs
drive electrically until the energy in the battery is used up completely before
the conventional propulsion is used; (2) Private and company car owners charge
their vehicles with a power of 3.7 kW whenever they are at home; (3) Commer-
cial vehicles are only charged overnight with 3.7 kW no matter where they are
parked.
To summarise, the battery simulation is performed for each vehicle as each
EV option for each year. The results are the electric driving shares as PHEV
and REEV and the substitutability by BEV for each individual vehicle i.
We use the discounted cash-flow method with resale values and calculate the
investment annuity for user i as
The list price LPi (for vehicle and battery) is multiplied by the annuity factor
consisting of the interest rate p and the investment horizon T1 . SPi denotes
11 Modelling Market Diffusion of EVs with Real World Driving Data
the sale price of vehicle i for resale after T1 years and depends on the vehicle’s
annual vehicle kilometres travelled (VKT). The resale value is calculated for
each user i with his individual annual VKTi . We use results of [61] with SPi =
exp [α + 12 · β1 T1 + β2 VKTi /12] · LPβi 3 where the parameters α = 0.97948,
β1 = −1.437·10−2 , β2 = −1.17·10−4 and β3 = 0.91569 have been obtained by
regression (see [61] for details) and T1 denotes the vehicle’s age in years at the
time of resale.1 We use different values for T1 for private and commercial users
reflecting the different average vehicle holding times. The second term describes
the investment for the user-specific charging infrastructure ICIi multiplied by
the annuity factor without residual values and its specific investment horizon
T2 = 15 years.
The operating expenditure of user i for one of the propulsion technologies
is calculated as
( )
aopex
i = VKT i · s i c e k e + (1 − s i ) c c k c + k OM + ktax + kCIi . (4)
We multiply the vehicle kilometres travelled per year by user i (VKTi ) with
the cost for driving in electric mode plus the cost for driving in conventional
mode and the cost for operations and maintenance (kOM ). The cost for electric
driving consists of the electric driving share si , the electric consumption ce in
kWh/km and the cost for electricity ke in EUR/kWh. The same holds for the
conventional driving where the share of conventional driving (1−si ) is multiplied
by the conventional consumption cc in litres/km and the cost for conventional
fuel kc in EUR/litre. Finally the annual vehicle taxes ktax in EUR/yr and the
annual operating cost for charging infrastructure kCIi (in EUR/yr) are added.
By adding the infrastructure cost to the TCO calculation, we address the fact
that users must have at least one charging point to charge their vehicle regularly.
For private car users, we distinguish users that have a garage attached to their
homes or leave their car on the street overnight [62].
To assign each driving profile to one of the adopter groups with their WTPM
we used the following algorithm. For each driving profile, we first calculate the
agreement in socio-demographic characteristics with each survey respondent.
Matches were collected from seven variables: sex, age, employment status,
education, house hold size, household income and city size (all variables were
categorical). That is, a driving profile could achieve up to seven matches with
each of the survey respondents from a known adopter group. The number of
matches mijk ≤ 7 of user i with adopter group member j = 1,∑. . . , Lk (out of
the k = 1, . . . , 4 groups) were collected and normalised Mik = j mijk /(7Lk ).
1
Please note that the regression results for the EV resale values imply a higher absolute
resale price SP but lower relative or percentage resale value RV ≡ SP/LP when compared
to internal combustion engine vehicles (ICEs). If we assume the vehicle’s age and annual
VKT fixed at average values, the sales price is given as SP = c · LPβ3 with some constant
c. Thus the relative resale value will be given as RV ≡ SP/LP = c · LPβ3 −1 and accordingly
( )1−β3
RVEV LPICE
RVICE
= LPEV
< 1 since LPICE < LPEV and 0 < β3 < 1.
Modelling Market Diffusion of EVs with Real World Driving Data 12
The driving profile i should then be assigned to group k where the overlap was
the largest Mik > Mil ∀l ̸= k. However, since the relative group size should be
limited (the number of innovators is rather small), we took only the top 0.5%
(cf. table 2), i.e. those 0.5% with the largest overlap with the survey innovators,
as innovators. The other potential innovators were then assigned to their second
best matching adopter group. The same procedure was applied to the following
groups in descending order in the innovation process: innovators, early adopters,
majority and laggards (see [57, p. 182] for computational details). As a result of
this algorithm, each driving profile has been positioned in the adoption process
according to its socio-demographic variables with an associated WTPM. The
validity of this assignment is analysed in section 4.5 below.
To assess the WTPM of commercial vehicle fleets, we used the results from
a survey of approximately 500 German fleet managers [63]. About half the
fleet managers stated a WTPM with an average of 10%. Again, this WTPM
needs to be assigned to individual commercial vehicle driving profiles. We used
company size (measured as number of employees) as a proxy for the position
in the adoption process. Since larger companies seem more likely to engage
early in innovative technologies, commercial vehicles from companies with more
than 250 employees were assigned a WTPM of 10%. About 50% of the driving
profiles are from such a company in agreement with the results from [63]. No
reliable data was available for WTPM of company car buyers. We assume that
company car buyers have zero WTPM and use this in the model.
Since EVs are in an early market phase, the choice of models and brands is
and will remain limited for the next years. This fact slows down the market dif-
fusion of EVs since brand and design are vehicle purchase criteria (cf. Figure 1).
The limited choice of brands and models is included in the EV market diffusion
model proposed here. In a first step the present and near-future choice of EVs
were collected (from press announcements). Announcements for up to two years
in the future were available. Based on this data and the relevant number of
brands within each vehicle segment for normalisation, a logistic regression of the
upcoming brands was performed. The resulting logistic availability function has
been extrapolated into the future. This availability function is integrated into
the purchase decision as follows: If an EV is TCO optimal for a driver of brand
b and this brand has announced a vehicle for the year under consideration (or
earlier) the EV will be bought by that user. If the user’s brand b does not offer
an EV, then some of the users choose an EV from a different brand (according
to the logistic availability function) and the rest chooses the second best TCO
option.
Finally, we combine all factors to the utility of the different vehicle options.
We calculate the utility for each user i for each propulsion technology p and
assume that each user buys the option that maximises his or her individual
utility, i.e.
( )
max − TCOip + WTPMip − limited choiceip (5)
p
13 Modelling Market Diffusion of EVs with Real World Driving Data
where the users individual TCOip includes the cost for the home charging option
or base charging point for commercial vehicles, cf. Eq.(3). Calculating the utility
maximal propulsion system for each user, summing up all drivers for whom this
would be an electric vehicle and dividing it by the total number of driving
profiles, we obtain the shares pl of potential EV users in the sample.
The survival probability has been obtained from the official German statistics
(see [59] for details). A lifetime distribution for the vehicles to remain in stock
is needed for the stock model introduced above. We use data for the complete
German vehicle fleet and the age dependent scrapping probability over ten years.
These probabilities have been calculated considering the age structure of the
German vehicle stock since 2001 by computing the change between adjacent
ages in subsequent years for all years available. The Weibull distribution for the
β
survivor function is given by L(t) = e−(t/τ ) where the parameters τ = 14.7
for scale and β = 3.5 for shape have been obtained from a least square fit.
These imply an average age for scrapping of 13.8 years and an average age of
the vehicles in stock of 7.3 years, both in good agreement with other studies
of the German passenger car stock [57]. This distribution will be used for the
stock model of the German vehicle fleet.
3.4 Discussion
We now turn to a discussion of the EV market diffusion model described in
the previous section. The distinctive features of the present model are the
Modelling Market Diffusion of EVs with Real World Driving Data 14
obtain an estimate for the vehicles annual VKT. In this case, the latter was not
part of the survey and thus had to be calculated. For each vehicle, the TCO as
gasoline and diesel car was calculated and the vehicle has been assigned the fuel
type with lower TCO. For the validation purpose, we studied only medium-sized
vehicles and assumed a purchase price of 19,560 Euro for gasoline and 21,560
Euro for the diesel vehicle. The average fuel prices in 2002 have been taken
from [59]. The parameters for the 2002 passenger car assumptions in German
commercial fleets are summarised in table 4. The estimated share of diesel
vehicles in the different commercial branches are shown in Figure 3 together
with the actual market share as stated in the corresponding survey.
Figure 3 shows that the estimated and actual market shares of commercial
diesel passenger cars in Germany are 40–60%. In Figure 3 the commercial
sectors are sorted by sample size which roughly follows the registrations of
passenger cars in these segments. In most cases, the estimated market shares
are very close to the actual market shares with significant deviations in the
sectors HJ (transport and telecommunications), A (agriculture and forestry),
and K (finance). Even if the share of diesel in a sector is well reproduced, one
could still question whether the individual vehicle assignments are correct. In
total, we found 54.2% of the individual assignments to be correct with a lowest
success rate of 38% in branch of industry K (finance) and the highest rate of
66% in branch B (mining). Thus we conclude that a TCO based model is in
principle able to reproduce the market shares of diesel passenger cars of German
commercial vehicles. TCO is thus one important aspect of the purchase decision
and accordingly part of many market diffusion models for EVs.
top-down market diffusion models, such as Bass or Gompertz [17], are used.
The effect of finite sample size can be expressed statistically as a confidence
interval [72]. That is, under the assumption of a representative sample, one
can compute intervals that have a high likelihood to contain the real market
share. This uncertainty stemming from finite sample size can then be passed on
to a result deriving from the market share, e.g. the stock of EVs or their total
energy consumption, by standard error propagation techniques. More precisely,
one estimates the sales share pl of vehicle type l (e.g. propulsion technology
or vehicle size or a combination of such distinctive characteristics) from the
number of driving profiles kl that fulfil the required condition (e.g. that should
be EVs) and the sub sample size nl as p̂l = kl /nl . Here, the hatˆindicates an
estimate for the ”real” market share pl . Given a confidence level 0 < α < 1, the
confidence band ”contains the real value of pl in (1 − α) · 100% of all cases in
which confidence intervals are estimated” [72]. For a given confidence level α
an upper value p+ − − +
l and a lower value pl are calculated, such that p̂l ∈ [pl , pl ]
in (1 − α) · 100% of the cases. In the present situation of market shares,
one has to calculate a confidence interval
( ) for the success probability pl of a
binomial distribution B(kl |pl , nl ) = nkll pkl (1 − p)nl −kl . The calculation of
confidence intervals via a Gaussian distribution is a common approximation for
this case. However, it is not reliable here since market shares of electric vehicles
tend to be rather small, i.e. kl ≪ nl , and the Gaussian approximation tends
to underestimate confidence intervals in that case [73]. Using a conservative
Modelling Market Diffusion of EVs with Real World Driving Data 18
approach, often referred to as ”exact”, the upper and lower confidence interval
boundaries are given by [73]
p−
l = Beta−1 (α/2, kl , nl − kl + 1) (7)
p+
l = Beta −1
(1 − α/2, kl + 1, nl − kl ).
Here, Beta−1 (x; a, b) denotes ∫ x the inverse of the cumulative Beta distribution
Beta(x; a, b) = (B(a, b)) −1 a−1 (1−t)b−1 dt with the Beta function B(x, y) =
∫ 1 x−1 0 t
0 t (1 − t)y−1 dt for normalisation.2 Note that p− l is not defined for kl = 0
and we set p− l = 0 in that case.
An example for the calculated confidence bands is shown in figure 3 for
the estimates of diesel market shares in German commercial sectors. Shown
are the α = 0.1, 1, 5, 10, 30 % confidence bands (from light blue to dark blue),
i.e. the ”true” value should lie within the confidence band in 99.9, 99, 95, 90,
70 % of the cases where confidence bands are estimated. As expected, the
width of the confidence bands increases with decreasing sample size (shown in
parentheses in the abscissa). In most cases the observed market share is within
or close to the range of the confidence bands. Thus, the TCO calculation
seems to capture important aspects of the purchase decision. Furthermore, the
calculated confidence bands help to distinguish purely statistical uncertainty
from possible systematic inaccuracies.
The statistical uncertainty can easily be propagated to derived quantities.
Let us assume the interval to be symmetric around pˆi and denote the half width
of the interval by ∆pl = (p+ −
l − pl )/2. The resulting uncertainty due to finite
sample size of the derived result is then calculated by error propagation. Let y =
f (x1 , . . . , xn ) denote a function of the input parameters xi being uncorrelated
and each having variance 2
∑ (∆xi ) . The variance of the resulting function is
then given by (∆f ) = i (∂f /∂xi )2 (∆xi )2 [74]. For example, let nl denote
2
N = 96). Please note that all driving profiles have been simulated as PHEVs
irrespective of their individual TCO. That is, only very few of the driving profiles
will actually be cost-effective as PHEVs and the first adopters of PHEVs are
unlikely to cover the whole range of annual VKTs [70, 54]. Furthermore, some
electric shares can be exceptionally high (> 365 · L/r where L denotes the
electric driving range and r the annual VKT) even for large annual VKT since
users can recharge up to several times a day if they return home between their
trips.
company car
80% company car regression
commercial cars
commercial car regression
analytical approximation
60%
40%
20%
0%
0 20.000 40.000 60.000 80.000
Annual VKT [km]
The typical electric driving share is decreasing with increasing annual VKT as
expected. For given electric driving range L and annual VKT r, s(r) = 240·L/r
can serve as typical electric driving share s approximating the kernel regression
in figure 4 between 10,000 and 60,000 km annual VKT. That is, an average
user would have an electric driving share as if he was distributing his driving
equally among two out of three days a year (240 ≈ 2/3·365). However, even for
fixed annual VKT the electric driving shares within a user group vary strongly
indicating large differences in the regularity of the users’ driving patterns. This
demonstrates that average electric driving shares are strongly misleading (even
when an average is formulated as a function of annual VKT) and supports our
proposed market diffusion model with individual TCOs based on the individual
driving profiles.
21 Modelling Market Diffusion of EVs with Real World Driving Data
0.8
CDF(∆si )
0.6
0.4
T=2
T=5
0.2 T =10
T =15
T =20
0
0 0.1 0.2 0.3 0.4
Confidence band width ∆si
after about 10 days and mainly driving profiles that contain trips on a small
number of days only improve noteworthy in the electric driving share precision
after this period of time. But as the observation time increases, the probability
of larger errors (as measured by the 75% quantile or the maximum of the CDF
in Figure 5) decreases. We conclude that driving profiles should contain at least
one week of driving.
The present section’s results highlight the importance of simulating each
individual driving profile instead of relying on assumed average electric driving
shares. Furthermore, driving profiles over several days of observation time allow
to estimate the statistical accuracy of the individual electric driving share and
thus of the accuracy of this very specific parameter in the TCO calculation.
Table 6: Numerical parameters for the logistic function of the estimated future
EV availability as obtained from regression and partially transferred between the
segments.
logistically over time A(t) = [1 + e−(t−t0 )/τ ]−1 . Here t0 denotes the point in
time when 50% of the brands in a given segment offer an EV and τ is the time
scale of change of EV availability. Technically, we collected EV announcements
from different brands and calculated the cumulative number of brands per year
that already offer or have announced to offer an EV in the given year (see [57,
Ch. 7.4]). This cumulative number of brands has been divided by the number
of brands active in that segment for normalisation. For the case of Germany, we
chose all brands with non-zero new registrations in 2011 as active (26 brands
in the small segment, 32 in medium and 29 in large).
The parameters of the logistic function to estimate future availability of
EVs were obtained by least-squares regression and – if the amount of data is
insufficient for selected segments – assumed to be partly equal between the
groups. Furthermore, PHEVs and REEVs were treated as a single group since
from the perspective of availability these vehicles are rather similar and many
future announcements do not clearly distinguish between the two technologies.
Most announcements were available for medium-sized and large vehicles. The
parameters for the availability of these segment were obtained first. The τ value
of medium sized vehicles has been used for small vehicles and LDVs, too. For
small and large vehicles, t0 was derived from the announced availability in 2015,
i.e. for small vehicles t0 = τ ln[1/(1/26) − 1] + 2015 and t0 = τ ln[1/(1/29) −
1]+2016 for large vehicles. The results of the regression for future availability of
EVs from different brands in Germany are summarised in Table 6. The resulting
availability functions are shown in Figure 6. The data that has been used for the
least square regression is also shown in Figure 6. These are the share of brands
that have announced to offer EVs in the near future for medium BEV (red
squares) and medium PHEV/REEVs (blue diamonds). The agreement between
the regression curve and the actual share of announcements of all active brands
in the segment is good.
We observe from Figure 6 that EVs have been announced mainly for small
and medium-sized vehicles. Furthermore, BEVs have mainly been announced
for small vehicles and PHEV/REEVs in the medium and large vehicle segments.
The obtained availability curves estimate a coverage of about 50% of the brands
already for 2015 for mid-size PHEV/REEV and small BEV, somewhat later for
Modelling Market Diffusion of EVs with Real World Driving Data 24
1
S BEV
0.9 M BEV
L BEV
0.8 LDV BEV
S PHEV/REEV
Availability of EVs
0.7 M PHEV/REEV
L PHEV/REEV
0.6 LDV PHEV/REEV
0.5
0.4
0.3
0.2
0.1
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Year
other segments. The expected increase in brand choice is slower only for large
BEVs, about 20% of the brands are expected to offer a BEV in this segment.
Table 7: Contingency table of original and newly assigened user group for val-
idation of the assignment. Note that the group sizes in the new assignment
have been pre-determined as described in section 3.3 and table 2.
5 Summary
We proposed a new approach to model market diffusion of electric vehicles in
a reliable, user specific and empirical way. The model decision for different
propulsion system is based on an individual total cost of ownership calculation
extended by a willingness-to-pay-more for new and environmental friendly vehi-
cles of some vehicle buyers, limited choice of EV cars available on the market and
the cost for charging reflecting the current lack of public charging infrastructure
and the corresponding range anxiety.
Modelling Market Diffusion of EVs with Real World Driving Data 26
Acknowledgements
The authors would like to thank Elisabeth Dütschke, Dirk Höhmann and André
Kühn. Funding from REM 2030 (regional ecological mobility) is gratefully ac-
knowledged.
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Patrick Plötz
Till Gnann
Martin Wietschel
Fraunhofer Institute for Systems and Innovation Research, Karlsruhe, Germany
Karlsruhe 2014