IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v309y2024ics0360544224029499.html
   My bibliography  Save this article

Environmental time-of-use scheme: Strategic leveraging of financial and environmental incentives for greener electric vehicle charging

Author

Listed:
  • Lee, Wonjong
  • Koo, Yoonmo
  • Kim, Yong-gun

Abstract

If charged with green electricity, electric vehicles (EVs) can contribute greatly toward mitigation of greenhouse gas (GHG) emissions. To promote greener EV charging practices, this study proposes the environmental time-of-use (E-ToU) which provides time-varying prices and GHG intensity signals. Specifically, in E-ToU, GHG intensity is used as a nudge to steer drivers’ charging behavior, providing a mixed financial-environmental incentive. Conjoint-based choice experiments were conducted with participation of 1220 South Korean drivers (including 129 EV owners) to simulate EV charging under this novel scheme. Unit commitment was utilized to determine time-varying prices and GHG intensity, as well as evaluate the effectiveness of E-ToU. The results indicated that both charging costs and GHG intensity influenced the charging decisions (timing) of EV users. The E-ToU shifted EV charging to renewable-abundant daytime, reducing EV charging costs by 14.1 % and GHG emission from EV charging by 15.7 %. Additionally, it reduced the generation costs by 2.2 %, GHG emissions by 1.5 %, and renewable energy curtailments by 2.5 % in the power system. Notably, E-ToU outperformed flat-rate/ToU with respect to all evaluated metrics, highlighting its effectiveness. Therefore, this study recommends the mixed financial-environmental incentive approach for generating synergistic co-benefits for sustainability of power and transportation sectors.

Suggested Citation

  • Lee, Wonjong & Koo, Yoonmo & Kim, Yong-gun, 2024. "Environmental time-of-use scheme: Strategic leveraging of financial and environmental incentives for greener electric vehicle charging," Energy, Elsevier, vol. 309(C).
    • Handle: RePEc:eee:energy:v:309:y:2024:i:c:s0360544224029499
    DOI: 10.1016/j.energy.2024.133174
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544224029499
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2024.133174?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Eric Cardella & Bradley T. Ewing & Ryan B. Williams, 2022. "Green is Good—The Impact of Information Nudges on the Selection of Voluntary Green-Power Plans," The Energy Journal, , vol. 43(1), pages 1-42, January.
    2. Zhang, Jing & Yan, Jie & Liu, Yongqian & Zhang, Haoran & Lv, Guoliang, 2020. "Daily electric vehicle charging load profiles considering demographics of vehicle users," Applied Energy, Elsevier, vol. 274(C).
    3. Kacperski, Celina & Ulloa, Roberto & Klingert, Sonja & Kirpes, Benedikt & Kutzner, Florian, 2022. "Impact of incentives for greener battery electric vehicle charging – A field experiment," Energy Policy, Elsevier, vol. 161(C).
    4. Lin, Guanwu & Qi, Bo & Ma, Changxi & Rostam, Fateh, 2024. "Intelligent electric vehicle charging optimization and horse herd-inspired power generation for enhanced energy management," Energy, Elsevier, vol. 291(C).
    5. Parsons, George R. & Hidrue, Michael K. & Kempton, Willett & Gardner, Meryl P., 2014. "Willingness to pay for vehicle-to-grid (V2G) electric vehicles and their contract terms," Energy Economics, Elsevier, vol. 42(C), pages 313-324.
    6. Schubert, Christian, 2017. "Green nudges: Do they work? Are they ethical?," Ecological Economics, Elsevier, vol. 132(C), pages 329-342.
    7. Langbroek, Joram H.M. & Franklin, Joel P. & Susilo, Yusak O., 2017. "When do you charge your electric vehicle? A stated adaptation approach," Energy Policy, Elsevier, vol. 108(C), pages 565-573.
    8. Kaur, Amrit Pal & Singh, Mukesh, 2023. "Time-of-Use tariff rates estimation for optimal demand-side management using electric vehicles," Energy, Elsevier, vol. 273(C).
    9. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, November.
    10. Yin, WanJun & Wen, Tao & Zhang, Chao, 2023. "Cooperative optimal scheduling strategy of electric vehicles based on dynamic electricity price mechanism," Energy, Elsevier, vol. 263(PA).
    11. Park, Sung-Won & Cho, Kyu-Sang & Hoefter, Gregor & Son, Sung-Yong, 2022. "Electric vehicle charging management using location-based incentives for reducing renewable energy curtailment considering the distribution system," Applied Energy, Elsevier, vol. 305(C).
    12. Fang, Yingkai & Asche, Frank & Novan, Kevin, 2018. "The costs of charging Plug-in Electric Vehicles (PEVs): Within day variation in emissions and electricity prices," Energy Economics, Elsevier, vol. 69(C), pages 196-203.
    13. Rupp, Matthias & Handschuh, Nils & Rieke, Christian & Kuperjans, Isabel, 2019. "Contribution of country-specific electricity mix and charging time to environmental impact of battery electric vehicles: A case study of electric buses in Germany," Applied Energy, Elsevier, vol. 237(C), pages 618-634.
    14. Enrich, Jacint & Li, Ruoyi & Mizrahi, Alejandro & Reguant, Mar, 2024. "Measuring the impact of time-of-use pricing on electricity consumption: Evidence from Spain," Journal of Environmental Economics and Management, Elsevier, vol. 123(C).
    15. Jochem, Patrick & Doll, Claus & Fichtner, Wolf, 2016. "External costs of electric vehicles," MPRA Paper 91602, University Library of Munich, Germany.
    16. Bengart, Paul & Vogt, Bodo, 2021. "Fuel mix disclosure in Germany—The effect of more transparent information on consumer preferences for renewable energy," Energy Policy, Elsevier, vol. 150(C).
    17. Wu, Ji & Su, Hao & Meng, Jinhao & Lin, Mingqiang, 2023. "Electric vehicle charging scheduling considering infrastructure constraints," Energy, Elsevier, vol. 278(PA).
    18. P, Balakumar & Ramu, Senthil Kumar & T, Vinopraba, 2024. "Optimizing electric vehicle charging in distribution networks: A dynamic pricing approach using internet of things and Bi-directional LSTM model," Energy, Elsevier, vol. 294(C).
    19. Lee, Jeongeun & Koo, Yoonmo, 2023. "A general equilibrium analysis of individual choice behavior on alternative fuel vehicles," Ecological Economics, Elsevier, vol. 204(PB).
    20. Yang, So Young & Woo, JongRoul & Lee, Wonjong, 2024. "Assessing optimized time-of-use pricing for electric vehicle charging in deep vehicle-grid integration system," Energy Economics, Elsevier, vol. 138(C).
    21. Choi, Hyunhong & Shin, Jungwoo & Woo, JongRoul, 2018. "Effect of electricity generation mix on battery electric vehicle adoption and its environmental impact," Energy Policy, Elsevier, vol. 121(C), pages 13-24.
    22. Lehmann, Nico & Sloot, Daniel & Ardone, Armin & Fichtner, Wolf, 2021. "The limited potential of regional electricity marketing – Results from two discrete choice experiments in Germany," Energy Economics, Elsevier, vol. 100(C).
    23. Nienhueser, Ian Andrew & Qiu, Yueming, 2016. "Economic and environmental impacts of providing renewable energy for electric vehicle charging – A choice experiment study," Applied Energy, Elsevier, vol. 180(C), pages 256-268.
    24. Ensslen, Axel & Schücking, Maximilian & Jochem, Patrick & Steffens, Henning & Fichtner, Wolf & Wollersheim, Olaf & Stella, Kevin, 2017. "Empirical carbon dioxide emissions of electric vehicles in a French-German commuter fleet test," MPRA Paper 91600, University Library of Munich, Germany.
    25. Plötz, Patrick & Jakobsson, Niklas & Sprei, Frances, 2017. "On the distribution of individual daily driving distances," Transportation Research Part B: Methodological, Elsevier, vol. 101(C), pages 213-227.
    26. Song, Yong Hyun & Kim, Hyun Joong & Kim, Seung Wan & Jin, Young Gyu & Yoon, Yong Tae, 2018. "How to find a reasonable energy transition strategy in Korea?: Quantitative analysis based on power market simulation," Energy Policy, Elsevier, vol. 119(C), pages 396-409.
    27. Ma, Shao-Chao & Yi, Bo-Wen & Fan, Ying, 2022. "Research on the valley-filling pricing for EV charging considering renewable power generation," Energy Economics, Elsevier, vol. 106(C).
    28. Yin, Wanjun & Jia, Leilei & Ji, Jianbo, 2024. "Energy optimal scheduling strategy considering V2G characteristics of electric vehicle," Energy, Elsevier, vol. 294(C).
    29. Bailey, Joseph & Axsen, Jonn, 2015. "Anticipating PEV buyers’ acceptance of utility controlled charging," Transportation Research Part A: Policy and Practice, Elsevier, vol. 82(C), pages 29-46.
    30. Kim, Jae D., 2019. "Insights into residential EV charging behavior using energy meter data," Energy Policy, Elsevier, vol. 129(C), pages 610-618.
    31. Hofmann, Jana & Guan, Dabo & Chalvatzis, Konstantinos & Huo, Hong, 2016. "Assessment of electrical vehicles as a successful driver for reducing CO2 emissions in China," Applied Energy, Elsevier, vol. 184(C), pages 995-1003.
    32. Hidrue, Michael K. & Parsons, George R., 2015. "Is there a near-term market for vehicle-to-grid electric vehicles?," Applied Energy, Elsevier, vol. 151(C), pages 67-76.
    33. Zhang, Lei & Huang, Zhijia & Wang, Zhenpo & Li, Xiaohui & Sun, Fengchun, 2024. "An urban charging load forecasting model based on trip chain model for private passenger electric vehicles: A case study in Beijing," Energy, Elsevier, vol. 299(C).
    34. Eric Cardella, Bradley T. Ewing, and Ryan B. Williams, 2022. "Green is Good-The Impact of Information Nudges on the Selection of Voluntary Green-Power Plans," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    35. Hong, Ying-Yi & Apolinario, Gerard Francesco DG. & Chung, Chen-Nien & Lu, Tai-Ken & Chu, Chia-Chi, 2020. "Effect of Taiwan's energy policy on unit commitment in 2025," Applied Energy, Elsevier, vol. 277(C).
    36. Choi, Hyunhong & Lee, Jeongeun & Koo, Yoonmo, 2023. "Value of different electric vehicle charging facility types under different availability situations: A South Korean case study of electric vehicle and internal combustion engine vehicle owners," Energy Policy, Elsevier, vol. 174(C).
    37. Will, Christian & Lehmann, Nico & Baumgartner, Nora & Feurer, Sven & Jochem, Patrick & Fichtner, Wolf, 2022. "Consumer understanding and evaluation of carbon-neutral electric vehicle charging services," Applied Energy, Elsevier, vol. 313(C).
    38. Møller, Niels Framroze & Andersen, Laura Mørch & Hansen, Lars Gårn & Jensen, Carsten Lynge, 2019. "Can pecuniary and environmental incentives via SMS messaging make households adjust their electricity demand to a fluctuating production?," Energy Economics, Elsevier, vol. 80(C), pages 1050-1058.
    39. Nansai, Keisuke & Tohno, Susumu & Kono, Motoki & Kasahara, Mikio, 2002. "Effects of electric vehicles (EV) on environmental loads with consideration of regional differences of electric power generation and charging characteristic of EV users in Japan," Applied Energy, Elsevier, vol. 71(2), pages 111-125, February.
    40. Onat, Nuri Cihat & Kucukvar, Murat & Tatari, Omer, 2015. "Conventional, hybrid, plug-in hybrid or electric vehicles? State-based comparative carbon and energy footprint analysis in the United States," Applied Energy, Elsevier, vol. 150(C), pages 36-49.
    41. Manjunath, Archana & Gross, George, 2017. "Towards a meaningful metric for the quantification of GHG emissions of electric vehicles (EVs)," Energy Policy, Elsevier, vol. 102(C), pages 423-429.
    42. Yang, YeHa & Yang, SoYoung & Moon, HyungBin & Woo, JongRoul, 2024. "Analyzing heterogeneous electric vehicle charging preferences for strategic time-of-use tariff design and infrastructure development: A latent class approach," Applied Energy, Elsevier, vol. 374(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lee, Wonjong & Woo, JongRoul & Kim, Yong-gun & Koo, Yoonmo, 2024. "Vehicle-to-grid as a competitive alternative to energy storage in a renewable-dominant power system: An integrated approach considering both electric vehicle drivers' willingness and effectiveness," Energy, Elsevier, vol. 310(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lee, Wonjong & Woo, JongRoul & Kim, Yong-gun & Koo, Yoonmo, 2024. "Vehicle-to-grid as a competitive alternative to energy storage in a renewable-dominant power system: An integrated approach considering both electric vehicle drivers' willingness and effectiveness," Energy, Elsevier, vol. 310(C).
    2. Yang, So Young & Woo, JongRoul & Lee, Wonjong, 2024. "Assessing optimized time-of-use pricing for electric vehicle charging in deep vehicle-grid integration system," Energy Economics, Elsevier, vol. 138(C).
    3. Will, Christian & Lehmann, Nico & Baumgartner, Nora & Feurer, Sven & Jochem, Patrick & Fichtner, Wolf, 2022. "Consumer understanding and evaluation of carbon-neutral electric vehicle charging services," Applied Energy, Elsevier, vol. 313(C).
    4. Kyuho Maeng & Sungmin Ko & Jungwoo Shin & Youngsang Cho, 2020. "How Much Electricity Sharing Will Electric Vehicle Owners Allow from Their Battery? Incorporating Vehicle-to-Grid Technology and Electricity Generation Mix," Energies, MDPI, vol. 13(16), pages 1-25, August.
    5. Ma, Shao-Chao & Yi, Bo-Wen & Fan, Ying, 2022. "Research on the valley-filling pricing for EV charging considering renewable power generation," Energy Economics, Elsevier, vol. 106(C).
    6. Kim, Junghun & Seung, Hyunchan & Lee, Jongsu & Ahn, Joongha, 2020. "Asymmetric preference and loss aversion for electric vehicles: The reference-dependent choice model capturing different preference directions," Energy Economics, Elsevier, vol. 86(C).
    7. Dingyi Lu & Yunqian Lu & Kexin Zhang & Chuyuan Zhang & Shao-Chao Ma, 2023. "An Application Designed for Guiding the Coordinated Charging of Electric Vehicles," Sustainability, MDPI, vol. 15(14), pages 1-16, July.
    8. Kain Glensor & María Rosa Muñoz B., 2019. "Life-Cycle Assessment of Brazilian Transport Biofuel and Electrification Pathways," Sustainability, MDPI, vol. 11(22), pages 1-31, November.
    9. Lee, Jeongeun & Koo, Yoonmo, 2023. "A general equilibrium analysis of individual choice behavior on alternative fuel vehicles," Ecological Economics, Elsevier, vol. 204(PB).
    10. Li, Wenbo & Long, Ruyin & Chen, Hong & Yang, Tong & Geng, Jichao & Yang, Muyi, 2018. "Effects of personal carbon trading on the decision to adopt battery electric vehicles: Analysis based on a choice experiment in Jiangsu, China," Applied Energy, Elsevier, vol. 209(C), pages 478-488.
    11. Moon, HyungBin & Park, Stephen Youngjun & Woo, JongRoul, 2021. "Staying on convention or leapfrogging to eco-innovation?: Identifying early adopters of hydrogen-powered vehicles," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    12. Nenming Wang & Guwen Tang, 2022. "A Review on Environmental Efficiency Evaluation of New Energy Vehicles Using Life Cycle Analysis," Sustainability, MDPI, vol. 14(6), pages 1-35, March.
    13. Noel, Lance & Papu Carrone, Andrea & Jensen, Anders Fjendbo & Zarazua de Rubens, Gerardo & Kester, Johannes & Sovacool, Benjamin K., 2019. "Willingness to pay for electric vehicles and vehicle-to-grid applications: A Nordic choice experiment," Energy Economics, Elsevier, vol. 78(C), pages 525-534.
    14. Ensslen, Axel & Ringler, Philipp & Dörr, Lasse & Jochem, Patrick & Zimmermann, Florian & Fichtner, Wolf, 2018. "Incentivizing smart charging: Modeling charging tariffs for electric vehicles in German and French electricity markets," MPRA Paper 91543, University Library of Munich, Germany, revised 17 Feb 2018.
    15. Li, Xiaohui & Wang, Zhenpo & Zhang, Lei & Sun, Fengchun & Cui, Dingsong & Hecht, Christopher & Figgener, Jan & Sauer, Dirk Uwe, 2023. "Electric vehicle behavior modeling and applications in vehicle-grid integration: An overview," Energy, Elsevier, vol. 268(C).
    16. Teevrat Garg & Ryan Hanna & Jeffrey Myers & Sebastian Tebbe & David G. Victor, 2024. "Electric Vehicle Charging at the Workplace: Experimental Evidence on Incentives and Environmental Nudges," CESifo Working Paper Series 11445, CESifo.
    17. Kim, Imjung & Kim, Junghun & Lee, Jongsu, 2020. "Dynamic analysis of well-to-wheel electric and hydrogen vehicles greenhouse gas emissions: Focusing on consumer preferences and power mix changes in South Korea," Applied Energy, Elsevier, vol. 260(C).
    18. Lehmann, Nico & Sloot, Daniel & Schüle, Christopher & Ardone, Armin & Fichtner, Wolf, 2023. "The motivational drivers behind consumer preferences for regional electricity – Results of a choice experiment in Southern Germany," Energy Economics, Elsevier, vol. 120(C).
    19. Will, Christian & Zimmermann, Florian & Ensslen, Axel & Fraunholz, Christoph & Jochem, Patrick & Keles, Dogan, 2024. "Can electric vehicle charging be carbon neutral? Uniting smart charging and renewables," Applied Energy, Elsevier, vol. 371(C).
    20. Tarroja, Brian & Hittinger, Eric, 2021. "The value of consumer acceptance of controlled electric vehicle charging in a decarbonizing grid: The case of California," Energy, Elsevier, vol. 229(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:309:y:2024:i:c:s0360544224029499. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.