Analyzing the diffusion of eco-friendly vans for urban freight distribution

Abstract

Purpose

The purpose of this paper is to investigate the diffusion dynamics of electric and hybrid commercial vans and its enabling factors in the city logistics (CL) contexts. The case of parcel delivery in Torino, Italy, is considered. Attention is paid to the influence on the choice of low impact vehicles of not only public strategies but also operational aspects characterizing urban freight distribution systems.

Design/methodology/approach

A System Dynamics model based on the Bass diffusion theory computes the number of adopters of low-emission vehicles together with the quantity of vans required and the associated economic savings. The model includes variables about freight demand, delivery frequency, van carrying capacity, routes, stops, distances traveled, and vehicle charging stations. A sensitivity analysis has been completed to identify the main diffusion levers. The focus is on advertising and other drivers, such as public contributions, taxes traditional polluting vehicles are subjected to, as well as on routing optimization strategies.

Findings

Advertising programs, green image, and word-of-mouth drive market saturation, although in a long time period. In fact, low-impact vehicles do not offer any economic advantage over traditional ones requiring higher investment and operating costs. Public incentives to purchase both green vehicles and charging stations, together with carbon taxes and a congestion charge affecting polluting vehicles, are able to shorten the adoption time. In particular, public intervention reveals to be effective only when it unfolds through a number of measures that both facilitate the use of environmentally friendly vehicles and discourage the adoption of traditional commercial vans. Route optimization also hastens the complete market saturation.

Research limitations/implications

This work fosters research about the mutual relationships between the diffusion of low-emission commercial vehicles and the operational and contextual CL factors. It provides a structured approach for investigating the feasibility of innovative good vehicles that might be part of assessments of CL measures and requirements. Finally, the model supports studies about the cooperation among stakeholders to identify effective commercial vehicle fleets.

Practical implications

This study fosters collaboration among CL players by providing a roadmap to identify the key factors for the diffusion of environmentally friendly freight vehicles. It also enables freight carriers to assess the operational and economic feasibility of adopting low-impact vehicles. Finally, it might assist public authorities in capturing the effects of new urban transportation policies prior to their implementation.

Originality/value

Most of the current CL literature defines policies and analyzes their effects. Also, there are several contributions on the diffusion of low emission cars. The present study is one of the first works on the diffusion of low-impact commercial vehicles in urban areas by considering the associated key operational factors. A further value is that the proposed model combines operational variables with economic and environmental issues.

Citation

Cagliano, A.C., Carlin, A., Mangano, G. and Rafele, C. (2017), "Analyzing the diffusion of eco-friendly vans for urban freight distribution", The International Journal of Logistics Management, Vol. 28 No. 4, pp. 1218-1242. https://doi.org/10.1108/IJLM-05-2016-0123