Abstract
Exploiting a disaggregate discrete choice model of automobile purchase, we reveal the willingness-to-pay for extended all-electric range in battery and plug-in hybrid electric cars in Norway. We find diminishing returns to range. By integration under the marginal willingness-to-pay curve, we calculate and plot the value of 100 km extended range. From an initial range of 150 km, the revealed willingness-to-pay for 100 km longer range in a battery electric vehicle is around € 24000. When starting from an initial range of 500 km, the value of another 100 km range drops to around € 5100.
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