Abstract: Planning the transition period for the adoption of
alternative fuel-technology powertrains is a challenging task that
requires sophisticated analysis tools. In this study, a system dynamic
approach was applied to analyze the bi-directional interaction
between the development of the refueling station network and vehicle
sales. Besides, the developed model was used to estimate the
transition cost to reach a predefined target (share of alternative fuel
vehicles) in different scenarios. Several scenarios have been analyzed
to investigate the effectiveness and cost of incentives on the initial
price of vehicles, and on the evolution of fuel and refueling stations.
Obtained results show that a combined set of incentives will be more
effective than just a single specific type of incentives.