With the growing increase in the number of vehicles across the globe, the need for alternative fuel vehicles is gaining ground in across the globe to solve challenges associated with internal combustion engine vehicles (ICEHs). Most nations rely on imported crude oil and because of politics and price instabilities; they are likely to suffer due to the rapid depletion of global oil reserves. Moreover, emissions from ICEVs are detrimental to the environment and people’s health. As a result, many countries have continuously attempted to produce efficient and practical electric vehicles to offer an alternative to internal combustion engine vehicles. In fact, most countries have set their targets regarding the number of electric vehicles they intend to implement few years from now.
A critical look at Germany reveals that car manufacturers are increasing their production of EVs. Indeed, customer awareness for electric cars has never been higher than now, particularly in Germany where almost the entire population is praising and willing to purchase electric vehicles. As a matter of fact, Germany is looking to adopt one million electric cars by 2020. Its president together with other dignitaries has expressed their wish and they are hoping to become the first nation in the world with 100% clean energy. Germany collects all the information to show that adoption of electric cars can be a successful process. Currently, a good number of Germans have already or are almost buying electric cars. Similarly, car manufacturers are not even hesitating to introduce their new concept car on this nation anymore. In fact, once the country has numerous charging points constructed and clean electricity generated, it is no doubt that Germany will be one of the countries with the highest number of electric cars on the road.
Despite all the advantages of electric vehicle and the country’s investment to the adoption of electric vehicles, Germany is unlikely to realize its target of reaching one million electric vehicles by 2020. As result, numerous questions have lingered into the minds of many researchers. First, what are the factors that are likely to hinder Germany’s achievement of one million electric vehicles by 2020? How can these problems be solved and accelerate adoption of electric vehicles? Is it the price problem that will hinder the country from achieving its target? Is it technology challenge or infrastructure problem? Numerous practitioners and researchers have attempted to uncover major factors that are likely to delay Germany from reaching its target of one million electric vehicles by 2020 and they have identified technology as the key factor. However, in the recent past, because of the technological advancements, the role of other factors including price, infrastructure, market conditions, and government policies have emerged. Besides, technical studies have revealed that existing Germany energy grid and capacity of power plants are unable to provide the quantity of electric for electric vehicles required in the country. The country also lacks adequate charging points to serve the growing number of electric vehicles. Therefore, many researchers have begun conducting detailed studies to uncover major factors that are likely to delay Germany’s target of reaching one million vehicles by 2020, and this is the main purpose of the present research.
2.0 Context of the Readers
From various points of view, this proposal is beneficial and interesting. Practically, finding of this study will offer a roadmap and set of regulations and policies that can accelerate adoption of more electric vehicles. Undoubtedly, the widespread adoption and use of electric cars in a social system can minimize emissions from ICEVs, which are one of the leading contributors of air pollution across the globe. For nations such as Germany whose electricity generation from clean sources has increased significantly in the past years, the effect of adopting electric cars on minimizing gas emissions can be significant. Based on the knowledge gap identified, this research will significantly contribute both to practitioners and researchers working in this field by allowing them use results from this study to develop policies for effective implementation of EVs.
As already noted, few studies have been carried out to establish the relative importance of factors that delay the adoption of electric vehicles. Most of these studies investigated the perceived factors hindering the implementation of EVs and missed other factors such as market conditions and social pressure. Therefore, findings that social prestige, social pressure, as well as, the belief that electric vehicles are beneficial for environment as the most critical factors for adopting electric vehicles extends the knowledge of the practitioners in this field and motivates both practitioners and researchers to start thinking about the power of social-oriented solutions on accelerating the implementation of electric vehicles. Findings from the study will help economists and government policy developers to formulate the most appropriate policy that will ensure reasonable prices of EVs and sustainable production costs.
3.0 Literature Review
The adoption of innovations hardly occurs by chance. Studies have examined different factors causing failure or delays in the adoption of electric vehicles (EVs). Since the early years of EVs development, the immature battery technology has been a leading impediment in the widespread adoption of these cars because of the limited range it offers per charge. Moreover, the protracted charging duration makes EVs less attractive. A survey by Hosseinpour, Chen, and Tang (2015) revealed that customers are willing to pay more for an increased mile of the driving range and for a decline in the charging duration. However, increasing driving range of EVs will ultimately require a heavier and a bigger battery at an increased price and with increased charging duration. In another study to examine factors behind the reduced adoption of electric vehicles across Europe. Shepherd, Bonsall, and Harrison (2012) noted that perceived lack of improvement direction emanating from the uncertainty of how customers value technological attributes delays implementation of EVs. Findings of these studies indicate that change in the preference of electric vehicle’s customers is linked to a rapid change in fuel prices that is quite unpredictable, making it difficult to predict consumer preference (Sun, Yamamoto, & Morikawa, 2016).
Tseng, Wu, and Liu (2013) believed that the delay in adopting electric vehicle is greatly influenced by social acceptance issues. One of the major aspects of social acceptance is the approval of all consequences of innovation. For instance, widespread adoption of electric vehicle will alter the charging behavior among people. Currently, customers are used to fueling their vehicles after driving for shorter distances, maybe once a week. However, with EVs, they are likely to charge their cars almost daily (Tseng, Wu, & Liu, 2013). Another critical behavior that is likely to change due to the adoption of electric vehicles is the driving pattern. Due to the range limitation of electric vehicles, people are likely to use alternative means of transport such as trains, airplanes, and buses for long distance and only use electric vehicles for short and daily movements. While the ability to charge electric vehicles at home pleases numerous potential consumers, Yong and Park (2017) noted that a lack of charging points is a major barrier to the widespread adoption of electric vehicles. Findings of this study revealed that most consumers prefer charging their electric vehicles at home. Yong and Park (2017) further noted that all other factors remaining constant, constructing one charging point per 100, 000 inhabitants would increase the adoption and market share of electric vehicles. They also believed that adding one more charging point could significantly increase the market share of electric vehicles than having $1000 increase in financial support. Therefore, to solve the problem of inadequate charging points, both local and federal governments should allocate much money to construct more accessible charging stations.
The cost of acquiring an electric vehicle has also been a major impediment to the widespread adoption of these cars. From customers’ personal accounts, although EVs are more environmentally friendly, they have reduced functionality as compared to internal combustion engine vehicles and therefore should be sold at a reduced price. However, lowering the cost of a product, particularly a technological innovation that is still in the early stages is quite complex. Lack of demand that causes increased production; it is difficult to realize the economy of scale. Sierzchula, Bakker, Maat and Van Wee (2014) noted that prices of EVs are not competitive with those of ICEVs; consumers will prefer ICEVs regardless of the number of charging points constructed across the country. The study concluded that EVs will only become competitive when their prices are significantly reduced accompanied by the mass construction of charging stations. Other scholars have noted that because social and economic benefits of EVs are not included in their purchase prices, consumer subsidies and financial incentives are essential to promote widespread implementation across the country. Findings of a study by Schroeder and Traber (2012) revealed that the price of gasoline is a key factor in the adoption of electric vehicles. Generally, the adoption of EVs increases with the increase in the prices of gasoline. Therefore, reducing the prices of gasoline for either political or non-political reasons negatively influence the implementation of such cars. Presently, the world is facing a massive decline in the prices of gasoline, and this decrease is likely to influence the sales and implementation of electric vehicles.
Most of the already suggested actions including consumer subsidies and financial incentives to include social benefits of electric vehicles into the buying price, as well as, increasing taxation on gases are government actions. Morrissey, Weldon, and O’Mahony (2016) noted that increasing taxation on carbon, dirty fuels and petroleum, stringent regulations, as well as, aggressive legislation often have a positive impact in the adoption of electric vehicles. Therefore, with the implementation of stringent rules and legislation, as well as, offering financial benefits, it is anticipated that electric vehicles will be widely adopted across Germany.
4.0 Methodology
This section describes methods that the researcher will use to collect and analyze data to answer the research question. Because of the nature of the problem under the investigation, this study will adopt qualitative research methods to answer the research question.
In this study, only secondary data will be used.
Data collected from the survey will be analyzed using statistical software SPSS. In particular, the Pearson’s coefficient will be used to establish the correlation between numerous variables that are likely to delay the adoption of electric vehicles. On the contrary, secondary data will be analyzed by comparing information from the previous studies associated with the adoption of an electric vehicle with the actual data that will be collected.
5.0 Conclusion
In sum, this proposal reviews factors delaying German progress in reaching 1 million electric vehicles by 2020 and identifies numerous gaps in knowledge and areas for future research. While early results reveal that the presence of charging points significantly relates to the adoption of electric cars adoption, there is still an open question regarding the nature of the relationship. Further, it offers minimal guideline on how the government should deal with the issue of charging points. The literature has only examined the types of public charging infrastructure that may be essential and how such a procedure may be designed for every regional need. Therefore, future studies should focus on the relationship between driving patterns and charging infrastructure with regards to demand of EVs. The main question that should be asked is; what is the relationship between driving patterns and charging infrastructure with regards to the demands of EVs? Secondly, future studies should focus on emerging engineering information about the optimal battery charge and use and incorporate them into policy that affect pricing and charging networks. Moreover, the literature offers convincing evidence that there exist a gap between customers’ possibility of adopting electric vehicles and the real adoption trends. Therefore, future studies should focus on the magnitude of this gap with customer characteristics as the main focus.