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Electric Vehicles With A Battery Switching Station: Adoption And Environmental Impact, Buket Avci, Karan Girotra, Serguei Netessine

Research Collection Lee Kong Chian School Of Business

The transportation sector's carbon footprint and dependence on oil are of deep concern to policy makers in many countries. Use of all-electric drive trains is arguably the most realistic medium-term solution to address these concerns. However, motorist anxiety induced by an electric vehicle's limited range and high battery cost have constrained consumer adoption. A novel switching-station-based solution is touted as a promising remedy. Vehicles use standardized batteries that, when depleted, can be switched for fully charged batteries at switching stations, and motorists only pay for battery use. We build a model that highlights the key mechanisms driving adoption and use …