This paper develops a dynamic, behavioral model with explicit spatial structure to explore the co-evolutionary dynamics between infrastructure supply and vehicle demand. These "chicken-egg" dynamics are fundamental to the emergence of a self-sustaining alternative fuel vehicle market, but not well understood. The paper explores in depth the dynamics resulting from local demand-supply interactions with strategically locating fuel-station entrants. We examine dynamics under heterogeneous socio-economic/demographic conditions. The research reveals the formation of urban adoption clusters as an important mechanism for early market formation. However, while locally speeding diffusion, these same micro-mechanisms can obstruct the emergence of a large sustaining market. Several other feedbacks that significantly influence dynamics, from both supply and demand behaviors are discussed. This can find applications in developing targeted entrance strategies for alternative fuel in transportation. The roles of other powerful positive feedbacks arising from scale and scope economies, R&D, learning by doing, driver experience, and word of mouth are discussed.

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Date created

• 2006 July 23-2006 July 27

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• Document

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• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

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• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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32937c7b43e3e015509bb71fd40d2054

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23d738ba88f8333bc39725f9cb5bd0b8

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f9377a3ac7b50b1fca5e04fb6d679ec2

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System Dynamic Society Records

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• This collection is part of the University Archives