Impact of energy production mix on alternative fuel vehicle adoption in Korea

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Impact of energy production mix on alternative fuel vehicle adoption in Korea

Moon, Sungho / Lee, Jongsu / Choi, Hyunhong / Woo, JongRoul

Abstract This study examines the environmental impact of alternative fuel vehicle (AFV) based on consumers’ vehicle adoption behavior according to the energy production mix (how fuel for each vehicle technology is produced) of battery electric vehicle (BEV) and hydrogen fuel cell vehicle (HFCV). The discrete choice experiment was utilized to examine the consumers’ vehicle adoption behavior, and our empirical results indicate that consumers prefer BEV with a renewable-oriented power mix the most, while they have the least preference for HFCV with a grey hydrogen-oriented production mix. Compared to the current market share of AFV, an annual market share of BEV and HFCV will increase by about 250% and 194%, respectively, when energy production mixes for AFV become cleaner by 2030. Moreover, making the AFV’s energy production mix cleaner can reduce about 130,000 tons of greenhouse gas from annual sales of vehicles than maintaining the current energy production mix in 2030.