Travel Behavior–Based Investigation on the Prospective Users’ Willingness to Pay for the Development of Electric Two-Wheeler Infrastructure in Urban Context
Publication: Journal of Urban Planning and Development
Volume 150, Issue 4
Abstract
The rapid urbanization and subsequent motorization experienced in India have profound negative implications on the environment due to increased exhaust emission levels. India is one of the biggest global markets for the motorized two-wheeler (M2W) segment. Therefore, replacing M2Ws with electric two-wheelers (E2Ws) is considered essential to mitigate the adverse effects on the environment. However, developing the required infrastructure to support the operation, especially as desired by the prospective users, is essential to accelerate the acceptance of E2Ws by Indian commuters. Therefore, a travel behavior–based investigation was carried out in this study to evaluate the prospective users’ preferences for the E2W infrastructure-specific attributes. The preferences were investigated in terms of willingness to pay (WTP) for the improvement of infrastructure attributes. The WTP is generally considered a measure of user benefit associated with a specific attribute. For the stated purpose, a stated preference experiment was designed, and preferences of the prospective users for different infrastructure settings were collected from E2W prospective users in Hyderabad. The preference data were analyzed by developing appropriate discrete choice models, namely, multinomial logit and random parameter logit (RPL) models. Further, the influence of socioeconomic and trip characteristics of the prospective E2W users on the infrastructure attributes was also evaluated by examining the heterogeneity around the means of random parameters in the RPL model. The results reveal that prospective users have a higher WTP for improving the public charging infrastructure and parking infrastructure availability. Characteristics such as gender, age, and journey time significantly influence the prospective E2W users’ WTP associated with infrastructure attributes. Based on the results and inferences, the necessary policy measures for developing adequate infrastructure for E2Ws are also presented in this study.
Get full access to this article
View all available purchase options and get full access to this article.
Data Availability Statement
Some or all data, models, or codes that support the findings of this study are available from the corresponding author upon reasonable request.
References
Amin, A., W. U. K. Tareen, M. Usman, K. A. Memon, B. Horan, A. Mahmood, and S. Mekhilef. 2020. “An integrated approach to optimal charging scheduling of electric vehicles integrated with improved medium-voltage network reconfiguration for power loss minimization.” Sustainability 12 (21): 1–15. https://doi.org/10.3390/su12219211.
Bakker, S., and J. Jacob Trip. 2013. “Policy options to support the adoption of electric vehicles in the urban environment.” Transp. Res. Part D Transp. Environ. 25: 18–23. https://doi.org/10.1016/j.trd.2013.07.005.
Barnes, R., M. Winters, N. Ste-Marie, H. McKay, and M. C. Ashe. 2016. “Age and retirement status differences in associations between the built environment and active travel behaviour.” J. Transp. Health 3 (4): 513–522. https://doi.org/10.1016/j.jth.2016.03.003.
Basu, D., and B. Maitra. 2010. “Stated preference approach for valuation of travel time displayed as traffic information on a VMS board.” J. Urban Plann. Dev. 136 (3): 214–224. https://doi.org/10.1061/(ASCE)UP.1943-5444.0000023.
Ben-Akiva, M. E., and S. R. Lerman. 1985. Discrete choice analysis: Theory and application to travel demand. London, UK: MIT Press.
Bera, R., and B. Maitra. 2022. “Commuters’ willingness-to-pay for the attributes of plug-in hybrid electric vehicle: A case study in Kolkata, India.” Transp. Dev. Econ. 8 (1): 1–17. https://doi.org/10.1007/s40890-021-00142-3.
Cherry, C., and R. Cervero. 2007. “Use characteristics and mode choice behavior of electric bike users in China.” Transp. Policy 14 (3): 247–257. https://doi.org/10.1016/j.tranpol.2007.02.005.
Chiu, Y.-C., and G.-H. Tzeng. 1999. “The market acceptance of electric motorcycles in Taiwan experience through a stated preference analysis.” Transp. Res. Part D Transp. Environ. 4 (2): 127–146. https://doi.org/10.1016/S1361-9209(99)00001-2.
DHI (Dept. of Heavy Industry). 2019. Scheme for faster adoption and manufacturing of electric vehicles in India phase II (FAME India phase II). New Delhi, India: DHI.
Dileep, G. 2020. “A survey on smart grid technologies and applications.” Renewable Energy 146: 2589–2625. https://doi.org/10.1016/j.renene.2019.08.092.
Dill, J., and G. Rose. 2012. “E-bikes and transportation policy: Insights from early adopters.” Transp. Res. Rec. 2314: 1–11. https://doi.org/10.3141/2314-01.
Dong, J., and Z. Lin. 2012. “Within-day recharge of plug-in hybrid electric vehicles: Energy impact of public charging infrastructure.” Transp. Res. Part D Transp. Environ. 17 (5): 405–412. https://doi.org/10.1016/j.trd.2012.04.003.
Dong, J., C. Liu, and Z. Lin. 2014. “Charging infrastructure planning for promoting battery electric vehicles: An activity-based approach using multiday travel data.” Transp. Res. Part C Emerging Technol. 38: 44–55. https://doi.org/10.1016/j.trc.2013.11.001.
Doucette, R. T., and M. D. McCulloch. 2011. “Modeling the CO2 emissions from battery electric vehicles given the power generation mixes of different countries.” Energy Policy 39 (2): 803–811. https://doi.org/10.1016/j.enpol.2010.10.054.
Edge, S., J. Dean, M. Cuomo, and S. Keshav. 2018. “Exploring e-bikes as a mode of sustainable transport: A temporal qualitative study of the perspectives of a sample of novice riders in a Canadian city.” Can. Geogr. 62 (3): 384–397. https://doi.org/10.1111/cag.12456.
Egbue, O., and S. Long. 2012. “Barriers to widespread adoption of electric vehicles: An analysis of consumer attitudes and perceptions.” Energy Policy 48 (2012): 717–729. https://doi.org/10.1016/j.enpol.2012.06.009.
Ferguson, M., M. Mohamed, C. D. Higgins, E. Abotalebi, and P. Kanaroglou. 2018. “How open are Canadian households to electric vehicles? A national latent class choice analysis with willingness-to-pay and metropolitan characterization.” Transp. Res. Part D Transp. Environ. 58: 208–224. https://doi.org/10.1016/j.trd.2017.12.006.
Gallagher, K. S., and E. Muehlegger. 2011. “Giving green to get green? Incentives and consumer adoption of hybrid vehicle technology.” J. Environ. Econ. Manage. 61 (1): 1–15. https://doi.org/10.1016/j.jeem.2010.05.004.
Greene, D. L., E. Kontou, B. Borlaug, A. Brooker, and M. Muratori. 2020. “Public charging infrastructure for plug-in electric vehicles: What is it worth?” Transp. Res. Part D Transp. Environ. 78: 102182. https://doi.org/10.1016/j.trd.2019.11.011.
Greene, W. H. 2012. NLOGIT Version 6: Reference guide. Plainview, NY: Econometric Software, Inc.
Hardt, C., and K. Bogenberger. 2019. “Usage of e-scooters in urban environments.” Transp. Res. Procedia 37: 155–162. https://doi.org/10.1016/j.trpro.2018.12.178.
He, Y., Q. Zhang, and Y. Pang. 2017. “The development pattern design of Chinese electric vehicles based on the analysis of the critical price of the life cycle cost.” Energy Policy 109: 382–388. https://doi.org/10.1016/j.enpol.2017.07.015.
Hensher, D. A., J. M. Rose, and W. H. Greene. 2005. Applied choice analysis: A primer. Cambridge, UK: Cambridge University Press.
Higgins, C. D., M. Mohamed, and M. R. Ferguson. 2017. “Size matters: How vehicle body type affects consumer preferences for electric vehicles.” Transp. Res. Part A Policy Pract. 100: 182–201. https://doi.org/10.1016/j.tra.2017.04.014.
Huang, F. H. 2016. “Exploring information needs of using battery swapping system for riders.” In Proc., Int. Conf. on Human Interface and the Management of Information, 531–541. Cham, Switzerland: Springer International Publishing.
Ito, N., K. Takeuchi, and S. Managi. 2013. “Willingness-to-pay for infrastructure investments for alternative fuel vehicles.” Transp. Res. Part D Transp. Environ. 18 (1): 1–8. https://doi.org/10.1016/j.trd.2012.08.004.
James, A. T., G. Kumar, A. Pundhir, S. Tiwari, R. Sharma, and J. James. 2022. “Identification and evaluation of barriers in implementation of electric mobility in India.” Res. Transp. Bus. Manage. 43: 100757. https://doi.org/10.1016/j.rtbm.2021.100757.
Jena, R. 2020. “An empirical case study on Indian consumers’ sentiment towards electric vehicles: A big data analytics approach.” Ind. Mark. Manage. 90: 605–616. https://doi.org/10.1016/j.indmarman.2019.12.012.
Khan, O. 2007. “Modelling passenger mode choice behaviour using computer aided stated preference data.” Doctors of Philosophy, School of Urban Development, Queensland Univ. of Technology.
Kim, J. H., G. Lee, J. Y. Park, J. Hong, and J. Park. 2019. “Consumer intentions to purchase battery electric vehicles in Korea.” Energy Policy 132: 736–743. https://doi.org/10.1016/j.enpol.2019.06.028.
Lebeau, P., C. Macharis, and J. Van Mierlo. 2016. “Exploring the choice of battery electric vehicles in city logistics: A conjoint-based choice analysis.” Transp. Res. Part E Logist. Transp. Rev. 91: 245–258. https://doi.org/10.1016/j.tre.2016.04.004.
Li, Z., and M. Ouyang. 2011. “The pricing of charging for electric vehicles in China—Dilemma and solution.” Energy 36 (9): 5765–5778. https://doi.org/10.1016/j.energy.2011.05.046.
Liu, Y., and I. K. W. Lai. 2020. “The effects of environmental policy and the perception of electric motorcycles on the acceptance of electric motorcycles: An empirical study in Macau.” SAGE Open 10 (1): 215824401989909. https://doi.org/10.1177/2158244019899091.
Ma, J., G. Mitchell, and A. Heppenstall. 2014. “Daily travel behaviour in Beijing, China: An analysis of workers’ trip chains, and the role of socio-demographics and urban form.” Habitat Int. 43: 263–273. https://doi.org/10.1016/j.habitatint.2014.04.008.
Majumdar, D., B. K. Majhi, A. Dutta, R. Mandal, and T. Jash. 2015. “Study on possible economic and environmental impacts of electric vehicle infrastructure in public road transport in Kolkata.” Clean Technol. Environ. Policy 17 (4): 1093–1101. https://doi.org/10.1007/s10098-014-0868-7.
Mendoza, J. M. F., A. Josa, J. Rieradevall, and X. Gabarrell. 2016. “Environmental impact of public charging facilities for electric two-wheelers.” J. Ind. Ecol. 20 (1): 54–66. https://doi.org/10.1111/jiec.12270.
Mersky, A. C., F. Sprei, C. Samaras, and Z. S. Qian. 2016. “Effectiveness of incentives on electric vehicle adoption in Norway.” Transp. Res. Part D Transp. Environ. 46: 56–68. https://doi.org/10.1016/j.trd.2016.03.011.
MOP (Ministry of Power). 2022. Charging infrastructure for electric vehicles (EV)—The revised consolidated guidelines and standards. New Delhi, India: MOP.
MORTH (Ministry of Road Transport and Highways). 2022. “Vahan and sarathi analytics.” Ministry of Road Transport and Highways, Government of India. Accessed July 11, 2022. https://parivahan.gov.in/analytics/.
MOUD (Ministry of Urban Development). 2008. A study on traffic and transportation policies and strategies in urban areas in India. New Delhi, India: MOUD.
Neubauer, J., and E. Wood. 2014. “The impact of range anxiety and home, workplace, and public charging infrastructure on simulated battery electric vehicle lifetime utility.” J. Power Sources 257: 12–20. https://doi.org/10.1016/j.jpowsour.2014.01.075.
NITI (National Institution for Transforming India) Aayog. 2022. “Accelerated e-mobility revolution for India’s Transportation.” Government of India. Accessed July 12, 2022. https://e-amrit.niti.gov.in/home.
Paladugula, A. L., et al. 2018. “A multi-model assessment of energy and emissions for India’s transportation sector through 2050.” Energy Policy 116: 10–18. https://doi.org/10.1016/j.enpol.2018.01.037.
Pareek, S., A. Sujil, S. Ratra, and R. Kumar. 2020. “Electric vehicle charging station challenges and opportunities: A future perspective.” In Proc., Int. Conf. on Emerging Trends in Communication, Control and Computing. 1–6. New York: IEEE.
Patil, M., and B. B. Majumdar. 2021a. “Prioritizing key attributes influencing electric two-wheeler usage: A multi criteria decision making (MCDM) approach—A case study of Hyderabad, India.” Case Stud. Transp. Policy 9 (2): 913–929. https://doi.org/10.1016/j.cstp.2021.04.011.
Patil, M., and B. B. Majumdar. 2021b. “An investigation on the key determinants influencing electric two-wheeler usage in urban Indian context.” Res. Transp. Bus. Manage. 43: 100693. https://doi.org/10.1016/j.rtbm.2021.100693.
Patil, M., B. B. Majumdar, P. K. Sahu, and L. T. Truong. 2021. “Evaluation of prospective users’ choice decision toward electric two-wheelers using a stated preference survey: An Indian perspective.” Sustainability 13 (6): 3035. https://doi.org/10.3390/su13063035.
Petzoldt, T., K. Schleinitz, S. Heilmann, and T. Gehlert. 2017. “Traffic conflicts and their contextual factors when riding conventional vs. electric bicycles.” Transp. Res. Part F Psychol. Behav. 46: 477–490. https://doi.org/10.1016/j.trf.2016.06.010.
Philipsen, R., T. Schmidt, J. van Heek, and M. Ziefle. 2016. “Fast-charging station here, please! User criteria for electric vehicle fast-charging locations.” Transp. Res. Part F Psychol. Behav. 40 (2016): 119–129. https://doi.org/10.1016/j.trf.2016.04.013.
Phanikumar, C. J., and B. Maitra. 2006. “Valuing urban bus attributes: An experience in Kolkata.” J. Pub. Trans. 9 (2): 4. https://doi.org/10.5038/2375-0901.9.2.4.
Potoglou, D., and P. S. Kanaroglou. 2007. “Household demand and willingness to pay for clean vehicles.” Transp. Res. Part D Transp. Environ. 12 (4): 264–274. https://doi.org/10.1016/j.trd.2007.03.001.
Qiao, Q., F. Zhao, Z. Liu, H. Hao, X. He, S. V. Przesmitzki, and A. A. Amer. 2020. “Life cycle cost and GHG emission benefits of electric vehicles in China.” Transp. Res. Part D Transp. Environ. 86: 102418. https://doi.org/10.1016/j.trd.2020.102418.
Sachan, S., and P. P. Singh. 2022. “Charging infrastructure planning for electric vehicle in India: Present status and future challenges.” Reg. Sustainability 3 (4): 335–345. https://doi.org/10.1016/j.regsus.2022.11.008.
Sadhukhan, S., U. K. Banerjee, and B. Maitra. 2015. “Commuters’ perception towards transfer facility attributes in and around metro stations: Experience in Kolkata.” J. Urban Plann. Dev. 141 (4): 04014038. https://doi.org/10.1061/(ASCE)UP.1943-5444.0000243.
Sadhukhan, S., U. K. Banerjee, and B. Maitra. 2016. “Commuters’ willingness-to-pay for improvement of transfer facilities in and around metro stations—A case study in Kolkata.” Transp. Res. Part A Policy Pract. 92: 43–58. https://doi.org/10.1016/j.tra.2016.07.004.
Schroeder, A., and T. Traber. 2012. “The economics of fast charging infrastructure for electric vehicles.” Energy Policy 43: 136–144. https://doi.org/10.1016/j.enpol.2011.12.041.
Sierzchula, W., S. Bakker, K. Maat, and B. van Wee. 2014. “The influence of financial incentives and other socio-economic factors on electric vehicle adoption.” Energy Policy 68: 183–194. https://doi.org/10.1016/j.enpol.2014.01.043.
Singh, N., T. Mishra, and R. Banerjee. 2022. “Emission inventory for road transport in India in 2020: Framework and post facto policy impact assessment.” Environ. Sci. Pollut. Res. 29 (14): 20844–20863. https://doi.org/10.1007/s11356-021-17238-3.
Sovacool, B. K., J. Kester, L. Noel, and G. Zarazua de Rubens. 2019. “Are electric vehicles masculinized? Gender, identity, and environmental values in Nordic transport practices and vehicle-to-grid (V2G) preferences.” Transp. Res. Part D Transp. Environ. 72: 187–202. https://doi.org/10.1016/j.trd.2019.04.013.
Tanaka, M., T. Ida, K. Murakami, and L. Friedman. 2014. “Consumers’ willingness to pay for alternative fuel vehicles: A comparative discrete choice analysis between the US and Japan.” Transp. Res. Part A Policy Pract. 70: 194–209. https://doi.org/10.1016/j.tra.2014.10.019.
Traffic Infra Tech. 2018. “Sustainable mobility initiatives in hyderabad metropolitan area.” Accessed February 3, 2021. https://www.trafficinfratech.com/sustainable-mobility-initiatives-in-hyderabad-metropolitan-area/.
Weinert, J., J. Ogden, D. Sperling, and A. Burke. 2008. “The future of electric two-wheelers and electric vehicles in China.” Energy Policy 36 (7): 2544–2555. https://doi.org/10.1016/j.enpol.2008.03.008.
WHO. 2016. Ambient air pollution: A global assessment of exposure and burden of disease. Geneva: WHO.
Zhang, Q., H. Li, L. Zhu, P. E. Campana, H. Lu, F. Wallin, and Q. Sun. 2018. “Factors influencing the economics of public charging infrastructures for EV—A review.” Renewable Sustainable Energy Rev. 94: 500–509. https://doi.org/10.1016/j.rser.2018.06.022.
Zhang, Y., Y. Li, X. Yang, Q. Liu, and C. Li. 2013. “Built environment and household electric bike ownership.” Transp. Res. Rec. 2387: 102–111. https://doi.org/10.3141/2387-12.
Information & Authors
Information
Published In
Journal of Urban Planning and Development
Volume 150 • Issue 4 • December 2024
Copyright
© 2024 American Society of Civil Engineers.
History
Received: Jul 3, 2023
Accepted: May 15, 2024
Published online: Jul 18, 2024
Published in print: Dec 1, 2024
Discussion open until: Dec 18, 2024
ASCE Technical Topics:
- Business management
- Developing countries
- Engineering fundamentals
- Freight transportation
- Infrastructure
- Logistics
- Mathematical models
- Mathematics
- Models (by type)
- Parameters (statistics)
- Practice and Profession
- Statistics
- Traffic engineering
- Transportation engineering
- Travel patterns
- Urban and regional development
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.