Improvement strategies of battery driving range in an electric vehicle supply chain considering subsidy threshold and co
- PDF / 940,599 Bytes
- 25 Pages / 439.37 x 666.142 pts Page_size
- 94 Downloads / 156 Views
Improvement strategies of battery driving range in an electric vehicle supply chain considering subsidy threshold and cost misreporting Zhongwei Chen1 · Zhi-Ping Fan1,2 Accepted: 9 September 2020 © Springer Science+Business Media, LLC, part of Springer Nature 2020
Abstract This paper investigates a two-stage supply chain consisting of a battery supplier (BS) and an electric vehicle manufacturer (EVM). Considering consumers’ sensitivity to the battery driving range, the BS can improve the driving range level by investing, and obtain subsidies if the driving range level exceeds the subsidy threshold set by the government. Meanwhile, the BS may misreport his private information of the investment cost to the EVM. We mainly examine the effect of cost information misreporting and how the BS determines the optimal improvement strategy when the subsidy threshold increases. Firstly, a low (high) subsidy threshold makes the BS raise the driving range level above (below) the subsidy threshold; when the subsidy threshold is moderately raised, the choice of the improvement strategy is controlled by both the degree of raising the subsidy threshold and the technical upper limit. Secondly, participants may show different preferences for the improvement strategy under certain conditions. Finally, cost information misreporting brings adverse effects to participants and reduces the driving range level. Keywords Electric vehicle driving range · Subsidy threshold · Improvement strategy · Investment cost information asymmetry
1 Introduction The transportation sector is projected to consume more than 40% of fuel energy globally by 2035 (Jang et al. 2018). In this context, the electric vehicle (EV), as an alternative to gasoline vehicles, has become increasingly popular among policy makers and the general
B
Zhi-Ping Fan [email protected] Zhongwei Chen [email protected]
1
Department of Information Management and Decision Sciences, School of Business Administration, Northeastern University, Shenyang 110169, China
2
State Key Laboratory of Synthetical Automation for Process Industries, Northeastern University, Shenyang 110819, China
123
Annals of Operations Research
public (Ahmadi 2019; Yang et al. 2019). Data shows that in 2018, global EVs sales increased by 64% when compared with the preceding year1 ; global EVs sales in the 1st half of 2019 increased by 46% compared with 2018.2 However, there are two factors hindering consumers’ adoption of EVs. First, EVs are generally more expensive than gasoline vehicles, which is attributed to the expensive green components of EVs. The battery is typically the most expensive component of an EV (a 24kWh battery that powers a small to medium-sized car costs approximately $15,000), and it almost takes up 30-40% of the entire production cost (Fu et al. 2018). Fortunately, some governments offer subsidies to the suppliers of green technique components. In the USA, for example, the Secretary of Energy provides a $2 billion worth of grant to the manufacturers of advanced batteries an
Data Loading...
