Diffusion of electric vehicles in Beijing considering indirect network effects

Abstract

Various policies on electric vehicles (EVs) have been implemented in Beijing to promote EV diffusion, but previous research has rarely considered the indirect network effects between EVs and EV charging infrastructures (EVCIs), and has not explored the impact of EVCI-related incentives on EV diffusion. This study aims to enrich the literature by incorporating EVCI development and indirect network effects in EV diffusion. A system dynamic model is proposed to systematically analyse the interactions among consumer, EV manufacturer and EVCI operator and simulate EV diffusion and ECVI investment in Beijing. Multiple scenarios are adopted to investigate the joint effects of the policy mix on EV diffusion. The results indicate that the oil-to-electricity subsidy promoted EVs and EVCIs to a greater extent than the license plate control policy. The EVCI maintenance policy outperformed EVCI construction and production subsidies on EV diffusion. Synergistic effects exist when the oil-to-electricity subsidy is mixed with EVCI-related incentives. This study provides implications for policymakers to promote EV diffusion with innovative and efficient policy instruments.