Commentary: Green Energy Policy Matters in Selling EVs

When it comes to green energy choices, a more comprehensive approach can prove more successful, according to a new study by UC Davis and Simon Fraser University. The study by Kenneth Kurani and Jonn Axsen shows that consumers are more likely to buy plug-in electric vehicles if they know that the electricity that will power the car will come at least in part from renewable energy. In fact, the authors who polled prospective buyers found that demand for EVs is 23 percent higher in regions with a “green electricity” option than in areas without a clean-energy program.

In general, motivations for EV purchases include potential financial savings, concern regarding air pollution and interest in new technologies. The study confirms existing marketing approaches by automakers such as Tesla Motors which is also marketing solar-powered Superchargers with their vehicles, and BMW which is partnering with a local solar provider in Germany.

The study has implications for the marketing of EVs in places selecting a community choice aggregation model which promote the use of renewable energy in specific communities.