Identifying Challenges for Sustained Adoption of Alternative Fuel Vehicles and Infrastructure

This paper develops a dynamic, behavioral model with an explicit spatial structure to explore the co-evolutionary dynamics between infrastructure supply and vehicle demand. Vehicles and fueling infrastructure are complementarities and their chicken-egg dynamics are fundamental to the emergence of a...

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Main Author: Struben, Jeroen J.R.
Format: Working Paper
Language:en_US
Published: 2007
Subjects:
Online Access:http://hdl.handle.net/1721.1/37306
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author Struben, Jeroen J.R.,
author_facet Struben, Jeroen J.R.,
author_sort Struben, Jeroen J.R.,
collection MIT
description This paper develops a dynamic, behavioral model with an explicit spatial structure to explore the co-evolutionary dynamics between infrastructure supply and vehicle demand. Vehicles and fueling infrastructure are complementarities and their chicken-egg dynamics are fundamental to the emergence of a self-sustaining alternative fuel vehicle market, but they are not well understood. The paper explores in-depth the dynamics resulting from local demand-supply interactions with strategically locating fuel-station entrants. The dynamics of vehicle and fuel infrastructure are examined under heterogeneous socio-economic/demographic conditions. The research reveals the formation of urban adoption clusters as an important mechanism for early market formation. However, while locally speeding diffusion, these same micro-mechanisms can obstruct the emergence of a large, self-sustaining market. Other feedbacks that significantly influence dynamics, such as endogenous topping-off behavior, are discussed. This model can be applied to develop targeted entrance strategies for alternative fuels in transportation. The roles of other powerful positive feedbacks arising from scale and scope economies, R&D, learning by doing, driver experience, and word of mouth are discussed.
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spelling mit-1721.1/373062019-04-10T21:00:42Z Identifying Challenges for Sustained Adoption of Alternative Fuel Vehicles and Infrastructure Struben, Jeroen J.R., diffusion transitions co-evolution industry dynamics transportation fueling infrastructure alternative fuels, complementarities spatial models system dynamics This paper develops a dynamic, behavioral model with an explicit spatial structure to explore the co-evolutionary dynamics between infrastructure supply and vehicle demand. Vehicles and fueling infrastructure are complementarities and their chicken-egg dynamics are fundamental to the emergence of a self-sustaining alternative fuel vehicle market, but they are not well understood. The paper explores in-depth the dynamics resulting from local demand-supply interactions with strategically locating fuel-station entrants. The dynamics of vehicle and fuel infrastructure are examined under heterogeneous socio-economic/demographic conditions. The research reveals the formation of urban adoption clusters as an important mechanism for early market formation. However, while locally speeding diffusion, these same micro-mechanisms can obstruct the emergence of a large, self-sustaining market. Other feedbacks that significantly influence dynamics, such as endogenous topping-off behavior, are discussed. This model can be applied to develop targeted entrance strategies for alternative fuels in transportation. The roles of other powerful positive feedbacks arising from scale and scope economies, R&D, learning by doing, driver experience, and word of mouth are discussed. 2007-04-27T19:37:05Z 2007-04-27T19:37:05Z 2007-04-27T19:37:05Z Working Paper http://hdl.handle.net/1721.1/37306 en_US MIT Sloan School of Management Working Paper 4625-06 application/pdf
spellingShingle diffusion
transitions
co-evolution
industry dynamics
transportation
fueling infrastructure
alternative fuels,
complementarities
spatial models
system dynamics
Struben, Jeroen J.R.,
Identifying Challenges for Sustained Adoption of Alternative Fuel Vehicles and Infrastructure
title Identifying Challenges for Sustained Adoption of Alternative Fuel Vehicles and Infrastructure
title_full Identifying Challenges for Sustained Adoption of Alternative Fuel Vehicles and Infrastructure
title_fullStr Identifying Challenges for Sustained Adoption of Alternative Fuel Vehicles and Infrastructure
title_full_unstemmed Identifying Challenges for Sustained Adoption of Alternative Fuel Vehicles and Infrastructure
title_short Identifying Challenges for Sustained Adoption of Alternative Fuel Vehicles and Infrastructure
title_sort identifying challenges for sustained adoption of alternative fuel vehicles and infrastructure
topic diffusion
transitions
co-evolution
industry dynamics
transportation
fueling infrastructure
alternative fuels,
complementarities
spatial models
system dynamics
url http://hdl.handle.net/1721.1/37306
work_keys_str_mv AT strubenjeroenjr identifyingchallengesforsustainedadoptionofalternativefuelvehiclesandinfrastructure