Network effects from the provision of charging stations in the market diffusion of electric vehicles

Abstract

This study investigates the long-term effects of charging station construction on electric vehicle (EV) diffusion, considering different deployment approaches and scales. Using China as a case study, we first examined the impact of network effects on consumers’ willingness to purchase EVs through discrete choice experiments. Based on the survey, an agent-based model that integrates agents and geographical context was developed to simulate EV diffusion under various charging station deployment scenarios. The main results are: (i) both direct and indirect network effects jointly influence consumer adoption of EVs (ii) a U-shaped relationship between network effects intensity and charging station scale exists, and (iii) concentrated charging station deployment accelerates EV diffusion more effectively than a systematic approach. These findings provide new evidence and policy implications for the development of the EV industry.