Resource title

Collaborative innovation for sustainable fleet operations: the electric vehicle adoption decision

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We study the impact of collaboration on the adoption of electric vehicles (EVs) among commercial fleets. Using cooperative game theory, we characterize the joint payoffs for the primary stakeholders in the EV adoption decision - the fleet manager, auto manufacturer, and electricity supplier - to determine the conditions under which EVs become economically feasible for commercial fleets. We do so in two settings. We first analyze a scenario where all three stakeholders cooperate in the EV adoption decision, a setting pertinent in countries such as France where a national electricity supplier makes such an arrangement feasible. We next analyze a scenario where the fleet manager and auto manufacturer cooperate but the electricity supplier participates as an independent actor, a setting pertinent to countries such as the United States where no single electricity supplier possesses sufficient market scope to become involved in the EV decision on a national scale. Comparing the regions of EV adoption in these two settings provides insights into the value of the electricity supplier's cooperation and the conditions under which intermediation to promote such cooperation can add value. Given the emissions mitigation potential resulting from EV adoption and the central role of ground transport in distribution, this research contributes to the broader study of sustainable operations.

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en

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application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/inseadwp2011/2011-40.pdf

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Copyright INSEAD. All rights reserved