Article published in Research in Transportation Economics

In collaboration with our team member Nunnapas Saereeporncharenkul, our department chair, Prof. Dr. Georg Hirte, has published an article titled “Can autonomous vehicles mitigate spatial grid network issues caused by electric vehicles? A microeconomic assessment” in the journal "Research in Transportation Economics". The abstract of the publication is provided below:

Electric vehicles (EVs) pose a major challenge to the local power distribution network, particularly the low-voltage (LV) network that serves residential demand. Autonomous electric vehicles (AEVs) may reduce the need to expand LV network capacity to meet residential charging needs by shifting charging to public charging stations connected to the medium-voltage (MV) network. To study this question, we develop a model that links EV users’ charging and travel choices with distribution system operators’ (DSOs) decisions on discriminatory grid network fees. According to our results, LV expansion costs resulting from travel and charging demand induced by AEVs fully offset the LV grid cost reductions resulting from a substantial shift to public charging. Therefore, switching to AEVs is not a way to lower overall network costs. We further examine various regulatory schemes for DSO fees, including Ramsey pricing. Regulation improves welfare, although it increases network costs relative to monopoly fee discrimination. The results are robust to changes in time spent in the vehicle, charging station density, battery size, and wholesale electricity prices.