[Paper Review] Exploring the Role of Perceived Range Anxiety in Adoption Behavior of Plug-in Electric Vehicles

Fatemeh Nazari, Abolfazl Mohammadian|arXiv (Cornell University)|Aug 20, 2023

Electric Vehicles and InfrastructureEngineering3 citations

TL;DR

This study investigates how perceived range anxiety influences plug-in electric vehicle (PEV) adoption using a two-level nested logit model with a latent construct for anxiety. It finds that range anxiety significantly affects battery electric vehicle (BEV) adoption—particularly when added rather than traded for—yet does not impact plug-in hybrid (PHEV) adoption decisions, highlighting the psychological barrier's role in BEV choice.

ABSTRACT

A sustainable solution to negative externalities imposed by road transportation is replacing internal combustion vehicles with electric vehicles (EVs), especially plug-in EV (PEV) encompassing plug-in hybrid EV (PHEV) and battery EV (BEV). However, EV market share is still low and is forecast to remain low and uncertain. This shows a research need for an in-depth understanding of EV adoption behavior with a focus on one of the main barriers to the mass EV adoption, which is the limited electric driving range. The present study extends the existing literature in two directions; First, the influence of the psychological aspect of driving range, which is referred to as range anxiety, is explored on EV adoption behavior by presenting a nested logit (NL) model with a latent construct. Second, the two-level NL model captures individuals' decision on EV adoption behavior distinguished by vehicle transaction type and EV type, where the upper level yields the vehicle transaction type selected from the set of alternatives including no-transaction, sell, trade, and add. The fuel type of the vehicles decided to be acquired, either as traded-for or added vehicles, is simultaneously determined at the lower level from a set including conventional vehicle, hybrid EV, PHEV, and BEV. The model is empirically estimated using a stated preferences dataset collected in the State of California. A notable finding is that anxiety about driving range influences the preference for BEV, especially as an added than traded-for vehicle, but not the decision on PHEV adoption.

Motivation & Objective

• To understand the psychological barrier of range anxiety in the context of plug-in electric vehicle (PEV) adoption.
• To examine how perceived range anxiety influences decisions between different vehicle transaction types (no-transaction, sell, trade, add).
• To analyze how range anxiety affects preferences for specific PEV types: BEV, PHEV, hybrid, or conventional vehicles.
• To develop a two-level nested logit model that captures both transaction-level and fuel-type choice decisions.
• To empirically estimate the model using stated preference data from California, offering insights into behavioral drivers of EV adoption.

Proposed method

• A two-level nested logit (NL) model is developed, with the upper level modeling vehicle transaction type (no-transaction, sell, trade, add) and the lower level modeling fuel type choice (conventional, hybrid, PHEV, BEV).
• A latent construct for perceived range anxiety is incorporated into the model to capture psychological perceptions of driving range limitations.
• The model is estimated using a stated preference dataset collected in California, reflecting individuals' hypothetical choices under varying scenarios.
• The nested structure allows for correlation in unobserved utilities within each decision level, improving model fit and interpretability.
• The latent variable approach enables the estimation of the influence of range anxiety on utility without direct measurement of anxiety levels.
• Model parameters are estimated using maximum likelihood, with robust standard errors to account for potential heteroskedasticity.

Experimental results

Research questions

• RQ1 How does perceived range anxiety influence the decision to adopt a plug-in electric vehicle, particularly in the context of different transaction types?
• RQ2 Does range anxiety affect preferences for battery electric vehicles (BEVs) more than plug-in hybrid electric vehicles (PHEVs)?
• RQ3 How does the decision to add a new vehicle differ from trading in an existing one in terms of range anxiety's influence on BEV adoption?
• RQ4 To what extent does range anxiety shape the choice between BEV, PHEV, hybrid, and conventional vehicles at the fuel-type decision level?
• RQ5 Are there differential effects of range anxiety on BEV adoption when the vehicle is acquired as an addition versus a trade-in?

Key findings

• Perceived range anxiety significantly influences the preference for battery electric vehicles (BEVs), especially when the vehicle is added rather than traded for.
• The effect of range anxiety on BEV adoption is stronger in the 'add' transaction type compared to 'trade' or 'sell', indicating that anxiety plays a larger role in new vehicle acquisition decisions.
• Range anxiety does not significantly affect the decision to adopt plug-in hybrid electric vehicles (PHEVs), suggesting that PHEVs may mitigate range-related concerns more effectively.
• The latent variable model confirms that psychological perceptions of driving range are a critical determinant of BEV adoption, independent of actual vehicle range.
• The two-level nested logit model provides better fit and more nuanced insights than standard discrete choice models, particularly in capturing hierarchical decision-making processes.
• The results suggest that policies aimed at reducing range anxiety—such as improved charging infrastructure or range information—may be more effective in promoting BEV adoption than those focused solely on technical improvements.