Value of Free Charging Bundle in Electric Vehicle Purchases
An Exploratory Analysis to Estimate the Value of Free Charging Bundle in Electric Vehicle Purchases
Project Budget (Federal UTC Funds): $49,079
Project Budget (Cost-share): $24,540
Institution: University of South Florida
Abstract
Our research establishes a national estimate of the willingness-to-pay (WTP) for a free charging bundle in the United States electric vehicle market. Using a stated choice experiment conducted using a probability-based sample from an internet panel, 36 choice scenarios were generated with 9 scenarios received per respondent. Individuals chose between three vehicles (two EVs and a comparable gasoline vehicle) with varying vehicle attributes: purchase price, driving range, annual fuel cost, and years of free charging. For EVs, the free charging bundle was offered at four levels: zero, one, two, and three years. Results from the mixed logit and latent class analysis showed heterogeneity in the sensitivity to the free charging time scale with a significant share of the population showing no sensitivity to a single year of free charging. All population segments experienced some WTP for free charging at the two- and three-year time frames.