EV diffusion promotion analysis under different charging market structure

Abstract

A suitable market structure is critical for promoting the healthy, stable, and sustainable development of the electric vehicle market. This paper studies which market structures can best contribute to the development of electric vehicles at various stages. The main findings show that competition is the optimal market structure at each stage if the charging infrastructure layout aims to maximize the number of electric vehicles. Moreover, when the charging infrastructure layout follows profit maximization in the early stages, monopoly is discovered as the optimal charging market structure, but competitive structures would be optimal after the market penetration of electric vehicles reaches some degree. Given these findings, we propose a public-private partnership (PPP) scheme to increase the social acceptance of electric vehicles. Next, apply these models in China and find that an optimal market structure could additionally drive about 30 % of electric vehicle penetration. Despite the PPP scheme's risk of delaying electric vehicle diffusion by 4 years and extending exclusive management rights by 3 years, it only reduces electric vehicle final adoption by 6.56 %. The findings can provide strong theoretical support and policy guidance for authorities in charging market planning and governance to accelerate electric vehicle diffusion and the industry's sustainable development.