2019 CSCE Annual Conference - Laval (Greater Montreal)

2019 CSCE Annual Conference - Laval (Greater Montreal) Conference


Title
Would Québec Reach the Electric Vehicle Adoption Target? - A Game Theory Approach

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Author(s)
Ms. Rafaela Panizza, Concordia University (Presenter)
Dr. Mazdak Nik-Bakht, Concordia University
Abstract

As the awareness to decrease greenhouse gas (GHG) emissions rises, so do the Québec action plans to improve its own rate of emission. One of the main plans is the “Transportation Electrification Action Plan”, which directs the government into new targets for electric vehicle (EV) adoption with a combination of programs. With 4 years of plan, the trend does not look promising to achieve the first set target (100,000 EVs by 2020). This study is modeling the Québec market as a game of strategy, played two main players (government and consumer) each aiming to maximize their own utility. This game is being analyzed for evaluation of feasibility of action plan targets, and the costs associated with it. The game is a perfect information extensive game that analyzes the EV consumers’ response to a change in financial incentive programs. The moves and payoffs of the game were based on available data. Results of this study showed that the government has multiple alternatives to reach the final 2026 target however, the time for making changes is crucial when analysing the economic benefits that the government can acquire. Finally, due to the limited reported experiments that Québec consumers have with the EV market; the simulation of EV adoption has its limitations. This is an initial effort to simulate the EV market in Québec, following steps of this work include the analysis of different segments of prospective users, so that in the future more accurately effective incentives can be known.  

Keywords: electric vehicle, financial incentive, consumer centered model, smart city, strategic planning, policy making.