Effects on CO₂ Reduction Potential of the Accelerated Introduction of Plug-in Hybrid Electric Vehicle in the Market

Abstract

In this paper we consider that there are two economical social behaviors when new technologies are introduced. One is on the short-term economic basis, the other one is on the long-tem economic basis. If we consider a learning curve on the technology, it is more economical than short-term behavior to accelerate the introduction of the technology much wider in the earlier term than that on short-term economic basis. The costs in the accelerated term are higher, but the introduction costs in the later terms are cheaper by learning curve. This paper focuses on the plug-in hybrid electric vehicles (PHEVs). The ways to derive the results on short-term economic basis and the results on long-term economic basis are shown. The result of short-term behaviors can be derived by using the iteration method in which the battery costs in every term are adjusted to the learning curve. The result of long-term behaviors can be derived by seeking to the way where the amount of battery capacity is increased. We also estimate that how much subsidy does it need to get close to results on the long-term economic basis when social behavior is on the short-term economic basis. We assume subsidy for PHEV's initial costs, which can be financed by charging fee on petroleum consumption. In that case, there is no additional cost in the system. We show that the greater the total amount of money to that subsidy is, the less the amount of both CO₂ emissions and system costs.