New study: battery leasing and better public charging are the cure for EV buyers’ phobias

Eaton Charging Station

A new study identifies two psychological barriers that are holding back EV sales. One neurosis that we’re already familiar with is range anxiety. Another is resale anxiety, the concern that the price of used EVs will plummet, which sounds like a reasonable fear these days, as the automakers continue to improve their new offerings every year.

In “Toward Mass Adoption of Electric Vehicles: Impact of the Range and Resale Anxieties,” authors Michael K. Lim and Ho-Yin Mak conclude that a combination of leasing batteries and improving charging technology can reassure the skeptics and help increase EV adoption.

To understand the impact of consumer anxieties, the authors used a two-stage game-theoretic modeling framework. The first stage examines the introduction phase, in which only new EVs are available. The second stage is the maturity phase, in which both new and used EVs are on the market. At this stage, the authors believe anxieties will diminish as consumers grow more familiar with plug-in vehicles.

Two models are presented as alternatives to the usual current arrangement, in which consumers own the battery and recharge it at home. The first model simply envisions greatly expanded support infrastructure, especially DC fast charging. In the second model, consumers lease the batteries, as Renault is doing in Europe with its Zoe EV.

The authors conclude that policy makers should take both phobias into account when designing a mix of incentives. If range anxiety is the main malady, then more public infrastructure is the cure. If resale anxiety is the big bogeyman, then a battery-leasing business model is the way to go.

 

Source: Science Daily