Browse > Article
http://dx.doi.org/10.5855/ENERGY.2016.25.4.093

Assessment of the Potential Consumers' Preference for the V2G System  

Lim, Seul-Ye (Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology)
Kim, Hee-Hoon (Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology)
Yoo, Seung-Hoon (Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology)
Publication Information
Journal of Energy Engineering / v.25, no.4, 2016 , pp. 93-102 More about this Journal
Abstract
Vehicle-to-Grid (V2G) system, bi-direction power trading technology, enables drivers possessing electric vehicle to sell the spare electricity charged in the vehicle to power distribution company. The drivers gain profit by charging electricity in the day time of high electricity rate. In this regard, the government is preparing the policies of building and supporting V2G infrastructure and demanding the potential consumers' preference for the V2G system. This paper attempts to analyze the consumers' preference using the data from obtained a survey of randomly selected 1,000 individuals. To this end, choice experiment, an economic technique, is employed here. The attributes considered in the study are residual amount of electricity, electricity trading hours, required plug-in time, and price measured as an amount additional to current gasoline vehicle price. The multinomial logit model, which requires the assumption of 'independence of irrelevant alternatives', is applied but the assumption could not be satisfied in our data. Thus, we finally utilized nested logit model which does not require the assumption. All the parameter estimates in the utility function are statistically significant at the 10% level. The estimation results show that the marginal willingness to pay (MWTP) for one hour increase in electricity trading hours is estimated to be KRW 1,601,057. On the other hand, a one percent reduction in residual amount of electricity and one hour reduction in required plug-in time in V2G system are computed to be KRW -91,911 and -470,619, respectively. The findings can provide policy makers with useful information for decision-making about introducing and managing V2G system.
Keywords
potential consumer preference; V2G (Vehicle-to-Grid); electric vehicle; electricity power trading; choice experiment;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
연도 인용수 순위
1 Choi, J.-Y., Park, E.-S., 2014, A study on the V2G application using the battery of electric vehicles under smart grid environment, The Korean Institute of Electrical Engineers, Vol. 63, pp. 40-45   DOI
2 Choi, J.-Y., Park, E.-S., 2014, A study on the V2G application using the battery of vehicles under smart grid environment, The Transactions of the Korean Institute of Electrical Engineers, Vol. 63, pp.40-45 (in Korean)   DOI
3 Green., W. H., 2000, Econometric analysis. London:Prentice Hall International.
4 Hanley, N., Wright, R. E., Adamowicz, W., 1998, Using choice experiments to value the environment. Environmental and Resource Economics, Vol. 11, pp. 413-428   DOI
5 Hausman, J., McFadden, D., 1984, Specification tests for the multinomial logit model, Econometrica, Vol. 52, pp. 1219-1240   DOI
6 Hidrue, M. K., Parsons, G. R., 2015, Is there a near-term market for vehicle-to-grid electric vehicles?, Applied Energy, Vol. 151, pp. 67-76   DOI
7 Intergovernmental Panel on Climate Change, 2014, 5th Assessment Report
8 Kempton, W., Tomic, J., 2001. Vehicle-to-Grid power fundamentals: Calculating capacity and net revenue, Journal of Power Sources, Vol. 144. pp. 268-279
9 Kempton, W., Tomic, J., 2001. Vehicle-to-Grid power: Battery, hybrid, and fuel cell vehicles as resources for distributed electric power in California. University of California.
10 Korea Institute of Energy Technology Evaluation and Planning, 2014, V4G technology development using VPP and VESS based on energy conservation station (in Korean)
11 Krinsky, I., Robb, A., 1986, On approximating the statistical properties of elasticities, Review of Economics and Statistics, Vol. 68, pp. 715-719   DOI
12 Ku, S.-J., Yoo, S.-H., 2010, Willingness to pay for renewable energy investment in Korea: A choice experiment study, Renewable and Sustainable Energy Review, Vol. 14, pp. 2196-2201   DOI
13 Mallawaarachchi, T., Blamey, R. K., Morrison, M. D., Johnson, A. K. L. and Bennett, J. W., 2001, Community values for environmental protection in a cane farming catchment in Northern Australia: A choice modeling study, ournal of Environmental Management, Vol. 62, pp. 301-316.   DOI
14 McFadden, D., 1973, Conditional logit analysis of qualitative choice behavior, In: Zarembka, P., (Ed.), Frontiers in Econometrics, New York: Academic Press, pp. 105-140
15 McFadden, D., 1978, Modeling the choice of residential location, In: Karlquist, A., Lundquist, L., Snikars, F., Weibull, J. W., (Eds.), Spatial interaction theory and planning models, Amsterdam: North-Holland, pp. 75-96
16 Park, T., Loomis, J. B., Creel, M., 1991, Confidence intervals for evaluating benefits from dichotomous choice contingent valuation studies, Land Economics, 67, pp. 64-73   DOI
17 Parsons, G. R., Hidrue, M. K., Kempton, W., Gardner, M. P., 2014, Willingness to pay for vehicleto- grid (V2G) electric vehicles and their contract terms, Energy Economics, Vol. 42, pp. 313-324   DOI
18 Phelps, R. H. Shanteau, J., 1978, Livestock judges: how much information can an expert use?, Organizational Behavior and Human Performance, Vol. 21, pp. 209-219   DOI
19 Richardson, D. B., 2013. Encouraging vehicle-to-grid (V2G) participation through premium tariff rates, Journal of Power Sources, Vol. 243, pp. 219-224   DOI
20 Yoo, S.-H., Kwak, S.-J., Lee, J.-S., 2008, Using a choice experiment to measure the environmental costs of air pollution impacts in Seoul, Journal of Environmental Management, Vol. 86, pp. 308-318   DOI
21 Lim, S.-Y., Lim, K.-M., Yoo, S.-H., 2014, External benefits of waste-to-energy in Korea: A choice experiment study, Renewable and Sustainable Energy Review, Vol. 34, pp. 588-585   DOI