*Result*: Electric vehicle adoption in logistics supply chain.

*Electric vehicles (EVs) are becoming increasingly popular in logistics transportation due to some concerns like the impact of emissions. In this paper, we investigate the profitability of introducing EVs in the logistics supply chain and the effects of EV introduction. By constructing an analytical framework consisting of an auto manufacturer, a logistics service provider (LSP) and a population of consumers, we have revealed several interesting insights. First, we show that the LSP would choose to introduce EVs only if the consumers’ maximum service distance is short or long enough. Second, contrary to intuition, we find that the LSP can be worse off when the consumers’ maximum service distance increases, which results from the operating cost differences among different vehicle types. Third, interestingly, we find that the LSP can benefit from the increase in fuel vehicles’ unit operational cost. The intuition and managerial implications of these insights are discussed. On the basis of these findings, we further provide theoretical and practical guidance for logistics supply chain managers in determining the optimal fleet adoption in a logistics supply chain. [ABSTRACT FROM AUTHOR]

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