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No Place Like Home: Charging Infrastructure and the Environmental Advantage of Plug-in Hybrid Electric Vehicles

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Listed:
  • Johannes Gessner
  • Wolfgang Habla
  • Benjamin Rübenacker
  • Ulrich J. Wagner

Abstract

Many European companies face the challenge of lowering CO2 emissions from their company car fleets. A promising lever is to increase the notoriously low electric usage of Plug-in Hybrid Electric Vehicles (PHEVs). This paper examines whether home charging infrastructure can help achieve these goals. We leverage quasi-experimental variation in the delivery and installation of home chargers to quantify the impact of this technology on energy use and CO2 emissions of PHEV company cars held by 856 employees of a large German company. Since fuel and electricity expenditures for these cars are covered by the employer, home charging mainly changes the non-monetary costs to an employee. We find that access to home charging increases electricity consumption by 317.9 kWh per quarter and decreases fuel consumption by 97.97 liters, reducing CO2 emissions by 38%. Moreover, access to home charging increases the employee's propensity to choose a Battery Electric Vehicle (BEV) upon renewal of the lease by 28.4 percentage points. We use these estimates to compute the private levelized abatement costs of home chargers for a range of scenarios characterizing the diffusion of BEVs and the effect of the program on vehicle choice. With current tax-inclusive energy prices, home chargers break even for the company within eight to 16 years.

Suggested Citation

  • Johannes Gessner & Wolfgang Habla & Benjamin Rübenacker & Ulrich J. Wagner, 2025. "No Place Like Home: Charging Infrastructure and the Environmental Advantage of Plug-in Hybrid Electric Vehicles," CRC TR 224 Discussion Paper Series crctr224_2025_663, University of Bonn and University of Mannheim, Germany.
    • Handle: RePEc:bon:boncrc:crctr224_2025_663
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    More about this item

    Keywords

    home charging; charging infrastructure; plug-in hybrid and battery electric vehicles; company cars;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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