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Preference and lifestyle heterogeneity among potential plug-in electric vehicle buyers

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  • Axsen, Jonn
  • Bailey, Joseph
  • Castro, Marisol Andrea

Abstract

We characterize heterogeneity in preferences and motivations regarding plug-in electric vehicles (PEVs)—including plug-in hybrids (PHEVs) and electric vehicles (EVs). Using survey data collected from 1754 new vehicle buying households in Canada in 2013, we segment respondents using two approaches that prove to be complementary. Preference-based segments were constructed using latent-class analysis of discrete choice experiment data. Potential PEV buyers were split into a “PEV-enthusiast” segment (8% of the sample) with extremely high valuation of PEVs and a broader “PHEV-oriented” segment (25%) that expressed moderately positive valuation of PHEVs. Preference-based segments also varied by respondents' valuation of specific attributes such as fuel savings. Our second approach constructed lifestyle-based segments using cluster analysis on a subset of potential early PEV buyers (33% of the total sample). The six lifestyle-based clusters varied in engagement in environment- and technology-oriented lifestyles, environmental concern and openness to change. Overall preferences were fairly similar across the clusters, though apparent motivations varied substantially by cluster as indicated by their differing engagement in lifestyles and environmental concern. Taken together, both approaches suggest that PHEVs are the most likely PEV to have broad market appeal and that car buyers have high degrees of heterogeneity in both preferences and motivations.

Suggested Citation

  • Axsen, Jonn & Bailey, Joseph & Castro, Marisol Andrea, 2015. "Preference and lifestyle heterogeneity among potential plug-in electric vehicle buyers," Energy Economics, Elsevier, vol. 50(C), pages 190-201.
    • Handle: RePEc:eee:eneeco:v:50:y:2015:i:c:p:190-201
    DOI: 10.1016/j.eneco.2015.05.003
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    More about this item

    Keywords

    Consumer preference; Lifestyle; Electric vehicle; Preference heterogeneity; Cluster analysis; Latent class analysis; Discrete choice model;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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