The willingness to pay for electric range by the consumer of electric vehicles: a regional comparison

Type de publication:

Conference Paper

Source:

Gerpisa colloquium, Paris (2021)

Résumé:

One of the biggest obstacles to the spread of electric vehicles worldwide is range anxiety. The uncertainty of not being able to reach your destination, especially in regions where the charging infrastructure is scarce. This leads consumers to postpone their plans to buy a pure electric vehicle. But in recent years, there has
been a progressive increase in the energy density of batteries, expanding their capacities and, ultimately, the electrical range of a vehicle. One way of measuring how range has improved is to measure how much consumers pay for a kilometer of range. The main objective of this paper is to compare the prices paid
(Manufacturer Suggested Retail Price (MSRP)) per kilometer and battery power using two indicators: Range ratio, measured as the price per km ($/km) and Battery ratio, measured as the price paid per KWh of battery capacity ($/KWh). Our initial analyses compare these two indicators across vehicles sold in the US, Europe and China markets between 2018 and 2020. We see consistent trends across all three regions with average prices (per km and KWh) for both range and batteries decreasing from 2018 to 2020. We also report significantly lower prices for both indicators in China compared to the US and Europe. Finally, we report significantly higher prices per KWh (for battery power) than kilometer (for range) across all
regions.

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