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A Service Station Location Model to Explore Prospects and Policies for Alternative Transport Fuels: A Case of CNG Distribution in Italy

  • Damiana Chinese
  • Piera Patrizio
  • Monica Bonotto
Chapter
Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 262)

Abstract

CNG is an example of alternative gaseous fuel whose market development requires supply infrastructure (pipelines), refuelling stations and alternative vehicles to exist at the same time, which is known as the “chicken and egg dilemma”. In this chapter, a case study of limited or locally nonexistent market development for CNG in an Italian frontier region is analyzed and a mixed integer non linear programming model is introduced to evaluate the effect of incentive measures envisaged by the regional government to foster refuelling station development. It is found that, taking an entrepreneurs’ perspective of maximizing profits, even with substantial capital grants investors are more likely to choose higher demand areas, in spite of fiercer competition, rather than areas without stations. Subsidies should be more specifically targeted to critical areas to be efficient.

Keywords

CNG filling stations Compressed natural gas vehicles Mixed integer non linear programming Location mode 

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Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

  • Damiana Chinese
    • 1
  • Piera Patrizio
    • 1
  • Monica Bonotto
    • 1
  1. 1.DIEGM, Dipartimento di Ingegneria Elettrica, Gestionale e MeccanicaUniversity of UdineUdineItaly

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