Exploring the diffusion of alternative fuel vehicles in Iceland using system dynamics simulation

In this paper we present a simulation model that was made for the United States but has been adjusted to Icelandic situation. The model captures the coevolution of alternative fuel vehicles and corresponding refueling infrastructure. The emissions from road transport and possible emission reduction was explored along with associated cost. The possible emission reduction was explored through scenarios where different alternative fuel vehicles are subsidized. Results imply that incentives for alternative fuel vehicles and their corresponding infrastructure could help reduce emission from the transport sector. The results also suggest that offering incentives for all available alternative fuel vehicles reduces emission fastest but offering incentives for only battery electric vehicles is the cheapest way of reducing emissions