Abstract
This study aims to determine the influential factors on the market share of electric vehicles through panel data analysis based on time series data from 2011 to 2015 in 31 countries. We selected five significant independent variables that are expected to affect electric vehicle adoption based on literature review. The econometric model in this study suggests that the relative price of electric vehicle compared to internal combustion engine vehicle, driving range, and number of models available in markets are correlated to the market share of electric vehicles. On the other hand, relationship between recharging infrastructure—an important factor for electric vehicle adoption in many studies—and market share of electric vehicles turned out to be insignificant in this study. From a political point of view, we argue that policy makers need to allocate more resources to research and development in order to extend driving range at the early stage of electric vehicle deployment in the markets.
Highlights
As concerns about global warming arise, many countries around the world are setting regulations and policies to mitigate climate change
This study began with the question of how the technical performance of electric vehicles (EV)—an important factor of eco-innovation product penetration in the market—has a significant impact on demand
Electric vehicle adoption began to expand in Norway, the Netherlands, and France from 2013 onwards since going on sale in earnest from 2010
Summary
As concerns about global warming arise, many countries around the world are setting regulations and policies to mitigate climate change. Governments are introducing market-pull and technology-push policies to have car manufacturers develop eco-friendlier vehicles as one of the eco-innovation initiatives. Car manufacturers pursue eco-innovation to comply with regulations set by governments as technology-push policies. They develop alternative fuel vehicles (AFV) including hybrid electric vehicles (HEV), plug-in electric vehicles (PHEV), electric vehicles (EV) and fuel cell electric vehicles (FCEV). They invest a huge amount of funds in research and development in order to benefit from the effect of mitigating the stringency in terms of corporate average fuel economy by selling those products in the market. There is an issue that the electrification through the diffusion of EVs collaborating with the generation of cleaner electricity is regarded as a promising pathway to mitigate air pollution from on-road vehicles and energy dependency [3]
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