An analysis of electric vehicle owners’ acceptance in the plus demand response (DR) program

This study examines electric vehicle (EV) owners’ acceptance of the Plus Demand Response (DR) program on Jeju Island, Korea, where renewable energy curtailments surged from 3 cases in 2015 to 181 in 2023. From a theoretical perspective, integrating EVs into DR programs addresses the intermittency of renewables, enhancing grid flexibility and supporting carbon neutrality - critical gaps in behavioral economics literature on demand-side management. Plus DR incentivizes EV charging during surplus renewable periods. Applying a single-bounded dichotomous choice contingent valuation method (CVM) to 313 Jeju EV owners surveyed May 15 - 19, 2023. Mean willingness to accept (WTA) compensation is KRW 71.21/kWh for one-day notice and KRW 89.31/kWh for 3-hour notice - equating to 24 - 30% discounts - with shorter notice elevating WTA due to higher opportunity costs. Income positively influences WTA while home charger ownership lowers it, as greater charging convenience reduces perceived inconvenience costs and increases Plus DR participation willingness (A low WTA translates to high acceptance for PLUS DR.). These findings reinforce the role of notification timing in DR participation and inform customized incentive designs, such as tailored notifications and subsidies for high-income/non-home charger users, to boost renewable integration.