Strategizing battery swap service: Self-operation or authorization?

Authors

Zhaojun Yang, Xidian University
Quanlong Lei, Xidian University
Jun Sun, The University of Texas Rio Grande ValleyFollow
Xu Hu, Xidian University
Yali Zhang, Northwestern Polytechnical University

Document Type

Article

Publication Date

9-2022

Abstract

Electric vehicle (EV) charging is still time-consuming compared with traditional vehicle refueling, making many consumers hesitant to make the switch. As a solution, battery swapping allows EVs to get energized within minutes. As economies like China embrace the emerging battery swap market, relevant automakers face strategic choices between self-operation and authorization. This study establishes game-theoretic models of a duopoly EV market comprising two automakers and a battery swap market involving an additional third-party operator. Each automaker may run its own battery swap service entirely or license at least part of it to the third-party operator. The results suggest that authorization is typically optimal for a competitive automaker, as its collaboration with the third-party operator enhances both EV market demand and battery swap serviceability, leading to increased social welfare in 99% of simulated cases. Practical implications are discussed for promoting EV industry chain development with the new link of battery swapping.

Comments

Original published version available at https://doi.org/10.1016/j.trd.2022.103411

Recommended Citation

Yang, Zhaojun, et al. "Strategizing battery swap service: Self-operation or authorization?." Transportation Research Part D: Transport and Environment 110 (2022): 103411. https://doi.org/10.1016/j.trd.2022.103411

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

Publication Title

Transportation Research Part D: Transport and Environment

DOI

10.1016/j.trd.2022.103411