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Modeling the acceptance of taxi owners and drivers to operate premium electric taxis: Policy insights into improving taxi service quality and reducing air pollution

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  • Yang, W.H.
  • Wong, R.C.P.
  • Szeto, W.Y.

Abstract

Taxis are the main contributor to the emissions of roadside pollutants and greenhouse gases. Many studies have shown that electrifying the taxi fleet is effective in reducing roadside pollution and carbon footprint. However, high ownership cost of electric taxis, limited driving range, and availability of chargers are constraining their deployment. Government subsidy has been sought for in many applications, yet the required amount can be enormous and remains infeasible in many jurisdictions. To address these issues, electric taxis are proposed to provide premium services and let all stakeholders share the financial input. That is, a higher fare will be charged to the taxi customers for a higher service quality. The taxi drivers with higher incomes will be able to pay more to rent the electric taxis. With an increase of rental income to the taxi owners, fewer financial incentives from the government will be required. This study aims to uncover the factors underpinning how taxi owners and drivers choose between conventional taxis and the proposed premium electric taxis. Stated-preference surveys were conducted in Hong Kong, and two separate binary logistic regression models were calibrated accordingly. It was found that the (subsidized) vehicle purchase price, rental income, and battery lifespan were influential to the owners, while fare income, the rental cost, the access time to chargers, and the range per charge significantly affected taxi drivers’ decisions. An equilibrium model with an iterative solution procedure is proposed to illustrate the interactions between the stakeholders and predict the changes in percentage-of-switch under different policy settings. Policy implications to improve taxi service and reduce roadside emissions and pollution are hence discussed.

Suggested Citation

  • Yang, W.H. & Wong, R.C.P. & Szeto, W.Y., 2018. "Modeling the acceptance of taxi owners and drivers to operate premium electric taxis: Policy insights into improving taxi service quality and reducing air pollution," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 581-593.
    • Handle: RePEc:eee:transa:v:118:y:2018:i:c:p:581-593
    DOI: 10.1016/j.tra.2018.10.011
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    Cited by:

    1. Fabien Leurent, 2019. "Microeconomics of a taxi service in a ring-shaped city," Working Papers hal-02047269, HAL.
    2. Luis Oliveira & Arun Ulahannan & Matthew Knight & Stewart Birrell, 2020. "Wireless Charging of Electric Taxis: Understanding the Facilitators and Barriers to Its Introduction," Sustainability, MDPI, vol. 12(21), pages 1-21, October.
    3. Zhou, Min & Long, Piao & Kong, Nan & Zhao, Lindu & Jia, Fu & Campy, Kathryn S., 2021. "Characterizing the motivational mechanism behind taxi driver’s adoption of electric vehicles for living: Insights from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 144(C), pages 134-152.
    4. Scorrano, Mariangela & Danielis, Romeo & Giansoldati, Marco, 2020. "Mandating the use of the electric taxis: The case of Florence," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 402-414.
    5. Escandon-Barbosa, Diana & Salas-Paramo, Jairo & Meneses-Franco, Ana Isabel & Giraldo- Gonzalez, Carlos, 2021. "Adoption of new technologies in developing countries: The case of autonomous car between Vietnam and Colombia," Technology in Society, Elsevier, vol. 66(C).

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