Market-Based Environmental Policies

Some eighty years ago, economists first proposed the use of corrective taxes to internalize environmental and other externalities. Fifty years later, the portfolio of potential economic-incentive instruments was expanded to include quantity-based mechanisms--tradable permits. Thus, economic-incentive approaches to environmental protection are clearly not a new policy idea, and over the past two decades, they have held varying degrees of prominence in environmental policy discussions. This paper summarizes U.S. experiences with such market-based policy instruments, including: pollution charges; deposit-refund systems; tradable permits; market barrier reductions; and government subsidy reductions. No particular form of government intervention, no individual policy instrument--whether market-based or conventional--is appropriate for all environmental problems. Which instrument is best in any given situation depends upon a variety of characteristics of the environmental problem, and the social, political, and economic context in which it is being regulated. There is no policy panacea. Indeed, the real challenge for bureaucrats, elected officials, and other participants in the environmental policy process comes in analyzing and then selecting the best instrument for each situation that arises.

Optimizing plug-in electric vehicle charging in interaction with a small office building

This paper considers the integration of plug-in electric vehicles (PEVs) in micro-grids. Extending a theoretical framework for mobile storage connection, the economic analysis here turns to the interactions of commuters and their driving behavior with office buildings. An illustrative example for a real office building is reported. The chosen system includes solar thermal, photovoltaic, combined heat and power generation as well as an array of plug-in electric vehicles with a combined aggregated capaci-ty of 864 kWh. With the benefit-sharing mechanism proposed here and idea-lized circumstances, estimated cost savings of 5% are possible. Different pricing schemes were applied which include flat rates, demand charges, as well as hourly variable final customer tariffs and their effects on the operation of intermittent storage were revealed and examined in detail. Because the plug-in electric vehicle connection coincides with peak heat and electricity loads as well as solar radiation, it is possible to shift energy demand as desired in order to realize cost savings. --Battery storage,building management systems,dispersed storage and generation,electric vehicles,load management,microgrid,optimization methods,power system economics,road vehicle electric propulsion

Will They Die Another Day? A Decision Support Perspective on Reusing Electric Vehicle Batteries

The diffusion of electric mobility suffers from an immature and expensive battery technology. Reusing electric vehicle batteries (EVBs) is a prospective opportunity for lowering the total costs of ownership of electric vehicles and using scarce natural resources more efficiently. However, to determine how to reuse a battery is a complex decision problem. In this study we set out to develop a design theory for a class of decision support systems (DSSs) that implement two main functions: First, a consideration set of feasible reuse scenarios is compiled based on an assess-ment of a battery’s structure and condition. Second, an offering is configured based on bun-dling batteries with customized services. We conclude with an outlook to our ongoing design science project that will, amongst others, explore to what extent systems instantiated from the design theory can remedy adverse effects caused by the ‘lemon market’ properties of the sec-ond-hand battery market

Macro environmental analysis of the electric vehicle battery second use market

The end-of-life (EOL) strategy of repurposing degraded electric vehicle (EV) batteries in second use applications holds the potential to reduce first-cost obstacles of EVs. With a prospective EV market uptake, increasing numbers of retired batteries will be available soon for battery second use (B2U). But this emerging secondary market remains unclear from a business model perspective. This paper evaluated the evolving B2U market from a macro environmental perspective to comprehend key opportunities and threats in the future

Sustainable business model perspectives for the electric vehicle industry : the case of battery second use

The purpose of this doctoral research dissertation is to examine sustainable business model (SBM) perspectives for the rapidly developing Battery Second Use (B2U) market within the emerging electric vehicle (EV) industry. Previous research has shown that a global mass market adoption of electric vehicles (EVs) is still hindered by the high costs of lithium-ion batteries (LIBs). Repurposing degraded EV batteries in second use applications holds the potential to reduce first-cost impediments of EVs. The research on new business models is limited. The ones that emerge rapidly within the EV and battery second use (B2U) industries focus mainly on economic aspects without integrating social and environmental dimensions. Simultaneously, the emerging research topic around sustainable business models (SBMs) seem to be able to bridge the environmental management concerns in conjunction with economic and social changes.This thesis further develops and extends extant literature by addressing this paucity through offering an interdisciplinary approach by drawing upon key perspectives from the emerging sustainable technology of EVs and its underlying B2U market in relation to SBMs. The research entails both, qualitative and quantitative assessments, to examine the correlation between SBMs and B2U. Major results indicate that B2U has led to innovative cross-sectoral multi stakeholder business relationships, particularly relevant for the previously isolated automotive and energy markets that are now investigating the full potential of second life batteries and hence new business opportunities for the first time in history. B2U holds the potential to facilitate current unsustainable practices in the EV industry. This in turn, will lead towards a faster EV market uptake and improvements of overall sustainability performance through SBM perspectives. Therefore, it was discovered that prospective innovative business models for B2U, which take a multi-stakeholder network centric business model design rather than firm-centric one, may prove to be a viable business case for sustainability. It was further unearthed that B2U leads to shared sustainable value creation mechanism for the EV industry (and newly emerging stakeholders) as part of innovative SBMs. Therefore, this doctoral dissertation proposes a new B2U innovative business model framework that records and explains the stakeholder relationships as an innovative and forming phenomenon, as well as opens new roads for future discussion among researchers and practitioners. This doctoral dissertation has addressed a paucity and inter-disciplinary literature gap and met an industrial and academic need accordingly. Overall, a new research stream emerges on SBMs for EV B2U and it is hoped that more contributions will follow to increase the impact and value of sustainable waste & resource management and the circular economy.El propósito de esta tesis doctoral de investigación, es examinar las diferentes perspectivas de los "Sustainable Business Models" (SBMs) para el mercado de "Battery Second Use" (B2U) ya que este se está desarrollando rápidamente dentro de la industria emergente del vehículo eléctrico (EV). Investigaciones anteriores han demostrado que la aceptación de vehículos eléctricos (EV) en el mercado mundial todavía se ve obstaculizada por los altos costes de las baterías de iones de litio (LIBs). La reutilización de baterías usadas de vehículos eléctricos (EV) en aplicaciones de "segundo uso" (B2U) tiene el potencial de reducir el alto coste de EV en la actualidad. La investigación de nuevos modelos de negocio es limitada. Los modelos que emergen rápidamente dentro de la industria tanto de EV como B2U se enfocan principalmente en aspectos económicos, sin tener en cuenta la importancia de la sociedad y del medio ambiente. Simultáneamente, la investigación en el nuevo campo de los SBMs parece ser capaz de encontrar la solución a las preocupaciones de la gestión medio ambiental a la vez que los cambios económicos y sociales. Esta tesis desarrolla y extiende aún más la literatura interdisciplinaria existente al abordar esta escasez y al ofrecer un enfoque interdisciplinario aprovechando las perspectivas claves de la tecnología sostenible emergente EV y su mercado B2U subyacente en relación con SBM. La investigación implica evaluaciones cualitativas y cuantitativas, para examinar la correlación entre SBMs y B2U. Los principales resultados indican que B2U ha conducido a nuevas relaciones comerciales en múltiples sectores y entre diferentes partes interesadas ("stakeholders"), particularmente relevante para los mercados automotrices y de energía que ahora están investigando todo el potencial de las baterías de segunda vida y, por lo tanto, nuevas oportunidades comerciales por primera vez en la historia. B2U tiene el potencial de facilitar las prácticas actuales no sostenibles en la industria de vehículos eléctricos. Esto, a su vez, conducirá a una adopción más rápida del mercado de vehículos eléctricos y a mejoras del rendimiento general de sostenibilidad a través de las perspectivas de SBMs. Por lo tanto, se ha descubierto que los posibles modelos de negocio innovadores para B2U que se basen en un modelo de negocio centrado en la red de múltiples partes interesadas en lugar del modelo centrado en una empresa podría ser un caso de negocio viable para asegura la sostenibilidad. Además, se ha descubierto que B2U conduce a un mecanismo de creación de valor sostenible compartido en la industria de vehículos eléctricos (y las nuevas partes interesadas emergentes) como parte de SBM innovadores. Por lo tanto, esta tesis doctoral propone un nuevo modelo de negocio innovador de B2U que registra y explica las relaciones con las partes interesadas como un fenómeno innovador y formador, así como abrir nuevos caminos para una futura discusión entre investigadores y profesionales. Esta tesis doctoral ha abordado una brecha de escasez y literatura interdisciplinaria y ha respondido a una necesidad industrial y académica en consecuencia. En general, surge un nuevo flujo de investigación sobre SBM para EV B2U y se espera que se sigan aportando más contribuciones para aumentar el impacto y el valor de la gestión sostenible de residuos y la economía circular.Postprint (published version

Mapping of Strategic Factors for 2nd Life Battery Repurposing: A qualitative multiple case study of Norwegian actors

Policies for energy efficiency and renewable energies, as well as consolidating CO2 standards for vehicles, have been implemented to achieve climate targets set by The Paris Climate Agreement. In recent years these actions have led to a boost in the global electrification of the transport sector, and hence Electric Vehicles (EVs). In Norway, EVs represented a market share at 55% in 2020, making the country a first-mover internationally. A Lithium-Ion Batteries (LIB) is removed from the EV when the retaining capacity drops below 80%, which will lead to an increase of decommissioned LIBs in the future. In recent years, the amount of End of Life (EoL) batteries has been seen as a business opportunity, giving rise to several start-ups employing decommissioned EV batteries in second-life applications. This thesis aims to cover a gap in the research literature, focusing on contributing valuable insight with empirical data from the Norwegian repurpose market. Through a qualitative multi-case study design, a selection of established businesses, either directly or indirectly connected to the Norwegian repurpose market, were studied. Findings mapped out strategic factors for repurposers and identified barriers and drivers in the Norwegian repurposing market. The use case of second-life batteries, channels for sourcing second-life batteries, and how the different cases can overcome barriers in the market proved to be the most influential factors. Barriers within the second-life battery market occur due to a lack of market structure and national regulatory standards. Moreover, empirical evidence shows a need for governmental facilitation to expand the market for second-life battery repurposing

Multi-objective Smart Charge Control of Electric Vehicles

With the increasing integration of electric vehicles and renewable energy sources in electricity networks, key opportunities in terms of a cleaner environment and a sustainable energy portfolio are unlocked. However, the widespread deployment of these two technologies, can entail significant challenges for the electricity grid and in a larger context for the society, when they are not optimally integrated. In this context, smart charging of electric vehicles and vehicle-to-grid technologies are being proposed as crucial solutions to achieve economic, technical and environmental benefits in future smart grids. The implementation of these technologies involves a number of key stakeholders, namely, the end-electricity user, the electric vehicle owner, the system operators and policy makers. For a wider and efficient implementation of the smart grid vision, these stakeholders must be engaged and their aims must be fulfilled. However, the financial, technical and environmental objectives of these stakeholders are often conflicting, which leads to an intricate paradigm requiring efficient and fair policies. With this focus in mind, the present research work develops multi-objective optimisation algorithms to control the charging and discharging process of electric vehicles. Decentralised, hybrid and real-time optimisation algorithms are proposed, modelled, simulated and validated. End user energy cost, battery degradation, grid interaction and CO2 emissions are optimised in this work and their trade-offs are highlighted. Multi-criteria-decision-making approaches and game theoretical frameworks are developed to conciliate the interests of the involved stakeholders. The results, in the form of optimal electric vehicle charging/discharging schedules, show improvements along all the objectives while complying with the user requirements. The outcome of the present research work serves as a benchmark for informing system operators and policy makers on the necessary measures to ensure an efficient and sustainable implementation of electro-mobility as a fundamental part of current and future smart grids