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Green charged decision-making: How two-part remuneration, contract flexibility, and environmental nudging drive vehicle-to-grid participation

Author

Listed:
  • Vey, Meike

    (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))

  • Namockel, Nils

    (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))

  • Ruhnau, Oliver

    (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))

Abstract

Electric mobility and renewable energy play key roles in the global energy transition. In this context, vehicle-to-grid technology, which enables bidirectional energy flow between electric vehicles and the grid, could make electric vehicles usable as energy storage units, thus supporting grid stability and integration of renewable energy. However, the willingness of electric vehicle owners to participate in vehicle-to-grid contracts remains insufficiently understood, particularly regarding how they respond to specific contract attributes. This paper addresses this gap by conducting a discrete choice experiment to evaluate the preferences of current and potential future German electric vehicle drivers for various vehicle-to-grid contract alternatives. We find that cycle-based remuneration, flexible contract duration, and environmental nudging significantly enhance consumer acceptance. Conversely, a lower guaranteed battery level and longer minimum plug-in durations negatively impact participation. We also test how respondent characteristics influence participation and identify income-dependent preferences, such as lower-income individuals attributing a stronger preference to fixed daily payments than higher-income individuals. Our differentiated őndings may be used to improve contract designs and marketing efforts to address the unique V2G preferences of various user segments.

Suggested Citation

  • Vey, Meike & Namockel, Nils & Ruhnau, Oliver, 2025. "Green charged decision-making: How two-part remuneration, contract flexibility, and environmental nudging drive vehicle-to-grid participation," EWI Working Papers 2025-1, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
  • Handle: RePEc:ris:ewikln:2025_001
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    File URL: https://www.ewi.uni-koeln.de/de/publikationen/green-charged-decision-making-how-two-part-remuneration-contract-flexibility-and-environmental-nudging-drive-vehicle-to-grid-participation/
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    More about this item

    Keywords

    Vehicle-to-grid; Discrete choice experiment; Willingness to accept; Preferences; Bidirectional charging;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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