Willingness to pay for electric vehicles and vehicle-to-grid applications: a Nordic choice experiment

Abstract

We present the results from a choice experiment conducted across Denmark Finland, Iceland, Norway and Sweden focusing on electric vehicles and vehicle-to-grid technology. The survey involved the entire Nordic region and had >4000 respondents choosing between two versions of electric vehicles (some including vehicle-to-grid capability) as well as their preferred gasoline vehicle. We analyzed the data using a mixed logit model and present the willingness to pay for driving range, acceleration, recharging time, fuel source, and vehicle-to-grid capability. In addition, due to the cross-national nature of our data, we also present willingness-to-pay comparisons between the five Nordic countries. We find that certain attributes, like driving range and recharging time, are substantially higher than previous estimates, whereas others, like acceleration are lower. In addition, we find that some attributes vary across the five countries (such as driving range), whereas other attributes remain constant. Finally, we find that vehicle-to-grid capability, divorced of onerous contracts, is significantly positive, but only for some countries, whereas in other countries it has no value, implying greater education and awareness of vehicle-to-grid is necessary if it is to accelerate electric vehicle adoption.