IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v165y2022ics0301421522001793.html
   My bibliography  Save this article

Effects of providing total cost of ownership information on below-40 young consumers’ intent to purchase an electric vehicle: A case study in China

Author

Listed:
  • Ji, Dandan
  • Gan, Hongcheng

Abstract

Compared to gasoline vehicles, electric vehicles have an advantage that financial benefits from reduced energy consumption offset much or all of the initial price premium. However, currently there exists consumer misconception of this advantage. One strategy to address this misconception is to provide life cycle cost information to consumers. This study investigates how providing information about 5-year fuel cost and total cost of ownership affects the stated preferences of ‘below 40’ young consumers for a gasoline, plug-in hybrid, or battery electric vehicle in the context of China. A rank-ordered logit model is developed to model consumers' stated preferences, based on data collected through a stated preference experiment. This study evidenced the significant positive effect of providing 5-year fuel cost and total cost of ownership information on the stated preference for electric vehicle. Socioeconomic attributes such as gender and education level are also found to have effects on consumers' electric vehicle purchasing intent. The results enhance the understanding of consumers' complex electric vehicle purchase decisions and have policy implications for electric vehicle promotion.

Suggested Citation

  • Ji, Dandan & Gan, Hongcheng, 2022. "Effects of providing total cost of ownership information on below-40 young consumers’ intent to purchase an electric vehicle: A case study in China," Energy Policy, Elsevier, vol. 165(C).
    • Handle: RePEc:eee:enepol:v:165:y:2022:i:c:s0301421522001793
    DOI: 10.1016/j.enpol.2022.112954
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421522001793
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2022.112954?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hidrue, Michael K. & Parsons, George R. & Kempton, Willett & Gardner, Meryl P., 2011. "Willingness to pay for electric vehicles and their attributes," Resource and Energy Economics, Elsevier, vol. 33(3), pages 686-705, September.
    2. Xing, Jianwei & Leard, Benjamin & Li, Shanjun, 2021. "What does an electric vehicle replace?," Journal of Environmental Economics and Management, Elsevier, vol. 107(C).
    3. John Cawley & Alex Susskind & Barton Willage, 2020. "The Impact of Information Disclosure on Consumer Behavior: Evidence from a Randomized Field Experiment of Calorie Labels on Restaurant Menus," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(4), pages 1020-1042, September.
    4. Hamamoto, Mitsutsugu, 2019. "An empirical study on the behavior of hybrid-electric vehicle purchasers," Energy Policy, Elsevier, vol. 125(C), pages 286-292.
    5. Kim, Jae Hun & Lee, Gunwoo & Park, Ji Young & Hong, Jungyeol & Park, Juneyoung, 2019. "Consumer intentions to purchase battery electric vehicles in Korea," Energy Policy, Elsevier, vol. 132(C), pages 736-743.
    6. Sheldon, Tamara L. & Dua, Rubal, 2020. "Effectiveness of China's plug-in electric vehicle subsidy," Energy Economics, Elsevier, vol. 88(C).
    7. Larson, Paul D. & Viáfara, Jairo & Parsons, Robert V. & Elias, Arne, 2014. "Consumer attitudes about electric cars: Pricing analysis and policy implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 69(C), pages 299-314.
    8. Jui-Che Tu & Chun Yang, 2019. "Key Factors Influencing Consumers’ Purchase of Electric Vehicles," Sustainability, MDPI, vol. 11(14), pages 1-22, July.
    9. Qian, Lixian & Grisolía, Jose M. & Soopramanien, Didier, 2019. "The impact of service and government-policy attributes on consumer preferences for electric vehicles in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 122(C), pages 70-84.
    10. 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.
    11. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, January.
    12. Gallagher, Kelly Sims & Muehlegger, Erich, 2011. "Giving green to get green? Incentives and consumer adoption of hybrid vehicle technology," Journal of Environmental Economics and Management, Elsevier, vol. 61(1), pages 1-15, January.
    13. Hardman, Scott, 2019. "Understanding the impact of reoccurring and non-financial incentives on plug-in electric vehicle adoption – A review," Transportation Research Part A: Policy and Practice, Elsevier, vol. 119(C), pages 1-14.
    14. Ou, Shiqi & Hao, Xu & Lin, Zhenhong & Wang, Hewu & Bouchard, Jessey & He, Xin & Przesmitzki, Steven & Wu, Zhixin & Zheng, Jihu & Lv, Renzhi & Qi, Liang & LaClair, Tim J., 2019. "Light-duty plug-in electric vehicles in China: An overview on the market and its comparisons to the United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 747-761.
    15. Al-Alawi, Baha M. & Bradley, Thomas H., 2013. "Total cost of ownership, payback, and consumer preference modeling of plug-in hybrid electric vehicles," Applied Energy, Elsevier, vol. 103(C), pages 488-506.
    16. Tal, Gil & Nicholas, Michael A. & Woodjack, Justin & Scrivano, Daniel, 2013. "Who Is Buying Electric Cars in California? Exploring Household and Vehicle Fleet Characteristics of New Plug-In Vehicle Owners," Institute of Transportation Studies, Working Paper Series qt70f4r9wc, Institute of Transportation Studies, UC Davis.
    17. Palmer, Kate & Tate, James E. & Wadud, Zia & Nellthorp, John, 2018. "Total cost of ownership and market share for hybrid and electric vehicles in the UK, US and Japan," Applied Energy, Elsevier, vol. 209(C), pages 108-119.
    18. Lin, Boqiang & Tan, Ruipeng, 2017. "Estimation of the environmental values of electric vehicles in Chinese cities," Energy Policy, Elsevier, vol. 104(C), pages 221-229.
    19. Priessner, Alfons & Sposato, Robert & Hampl, Nina, 2018. "Predictors of electric vehicle adoption: An analysis of potential electric vehicle drivers in Austria," Energy Policy, Elsevier, vol. 122(C), pages 701-714.
    20. Ziegler, Andreas, 2012. "Individual characteristics and stated preferences for alternative energy sources and propulsion technologies in vehicles: A discrete choice analysis for Germany," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(8), pages 1372-1385.
    21. Sheldon, Tamara L. & Dua, Rubal, 2019. "Assessing the effectiveness of California's “Replace Your Ride”," Energy Policy, Elsevier, vol. 132(C), pages 318-323.
    22. Hardman, Scott, 2019. "Understanding the Impact of Reoccurring and Non-Financial Incentives on Plug-in Electric Vehicle Adoption – A Review," Institute of Transportation Studies, Working Paper Series qt7v13w987, Institute of Transportation Studies, UC Davis.
    23. Dumortier, Jerome & Siddiki, Saba & Carley, Sanya & Cisney, Joshua & Krause, Rachel M. & Lane, Bradley W. & Rupp, John A. & Graham, John D., 2015. "Effects of providing total cost of ownership information on consumers’ intent to purchase a hybrid or plug-in electric vehicle," Transportation Research Part A: Policy and Practice, Elsevier, vol. 72(C), pages 71-86.
    24. DeShazo, J.R. & Sheldon, Tamara L. & Carson, Richard T., 2017. "Designing policy incentives for cleaner technologies: Lessons from California's plug-in electric vehicle rebate program," Journal of Environmental Economics and Management, Elsevier, vol. 84(C), pages 18-43.
    25. Junquera, Beatriz & Moreno, Blanca & Álvarez, Roberto, 2016. "Analyzing consumer attitudes towards electric vehicle purchasing intentions in Spain: Technological limitations and vehicle confidence," Technological Forecasting and Social Change, Elsevier, vol. 109(C), pages 6-14.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stekelberg, James & Vance, Thomas, 2024. "The effect of transferable tax benefits on consumer intent to purchase an electric vehicle," Energy Policy, Elsevier, vol. 186(C).
    2. Adu-Gyamfi, Gibbson & Song, Huaming & Nketiah, Emmanuel & Obuobi, Bright & Wu, Qin & Cudjoe, Dan, 2024. "Refueling convenience and range satisfaction in electric mobility: Investigating consumer willingness to use battery swap services for electric vehicles," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    3. Hailin Xiao & Xiaocai Zhang, 2022. "The Market Disruption Path of Green-Oriented Trajectory-Transformed Technology Innovation: A Study of Consumer Lifestyles during the “Chasm” in China’s Electric Vehicle Market," Sustainability, MDPI, vol. 14(14), pages 1-27, July.
    4. Yang, Anni & Liu, Chenhui & Yang, Di & Lu, Chaoru, 2023. "Electric vehicle adoption in a mature market: A case study of Norway," Journal of Transport Geography, Elsevier, vol. 106(C).
    5. Yang, Zaoli & Li, Qin & Charles, Vincent & Xu, Bing & Gupta, Shivam, 2023. "Supporting personalized new energy vehicle purchase decision-making: Customer reviews and product recommendation platform," International Journal of Production Economics, Elsevier, vol. 265(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martin Kalthaus & Jiatang Sun, 2021. "Determinants of Electric Vehicle Diffusion in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(3), pages 473-510, November.
    2. Simona Bigerna & Silvia Micheli, 2018. "Attitudes Toward Electric Vehicles: The Case of Perugia Using a Fuzzy Set Analysis," Sustainability, MDPI, vol. 10(11), pages 1-14, November.
    3. Zhang, Tong & Burke, Paul J. & Wang, Qi, 2024. "Effectiveness of electric vehicle subsidies in China: A three-dimensional panel study," Resource and Energy Economics, Elsevier, vol. 76(C).
    4. Philip, Thara & Whitehead, Jake & Prato, Carlo G., 2023. "Adoption of electric vehicles in a laggard, car-dependent nation: Investigating the potential influence of V2G and broader energy benefits on adoption," Transportation Research Part A: Policy and Practice, Elsevier, vol. 167(C).
    5. Brückmann, Gracia, 2022. "The effects of policies providing information and trialling on the knowledge about and the intention to adopt new energy technologies," Energy Policy, Elsevier, vol. 167(C).
    6. Peng, Ruoqing & Tang, Justin Hayse Chiwing G. & Yang, Xiong & Meng, Meng & Zhang, Jie & Zhuge, Chengxiang, 2024. "Investigating the factors influencing the electric vehicle market share: A comparative study of the European Union and United States," Applied Energy, Elsevier, vol. 355(C).
    7. Wee, Sherilyn & Coffman, Makena & Allen, Scott, 2020. "EV driver characteristics: Evidence from Hawaii," Transport Policy, Elsevier, vol. 87(C), pages 33-40.
    8. Goel, Pooja & Kumar, Aalok & Parayitam, Satyanarayana & Luthra, Sunil, 2023. "Understanding transport users' preferences for adopting electric vehicle based mobility for sustainable city: A moderated moderated-mediation model," Journal of Transport Geography, Elsevier, vol. 106(C).
    9. Kim, Jae Hun & Lee, Gunwoo & Park, Ji Young & Hong, Jungyeol & Park, Juneyoung, 2019. "Consumer intentions to purchase battery electric vehicles in Korea," Energy Policy, Elsevier, vol. 132(C), pages 736-743.
    10. Mekky, Maher F. & Collins, Alan R., 2024. "The Impact of state policies on electric vehicle adoption -A panel data analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 191(C).
    11. Danielis, Romeo & Rotaris, Lucia & Giansoldati, Marco & Scorrano, Mariangela, 2020. "Drivers’ preferences for electric cars in Italy. Evidence from a country with limited but growing electric car uptake," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 79-94.
    12. Zhou, Min & Long, Piao & Kong, Nan & Zhao, Lindu & Jia, Fu & Campy, Kathryn S., 2021. "Characterizing the motivational mechanism behind taxi driver’s adoption of electric vehicles for living: Insights from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 144(C), pages 134-152.
    13. Rosales-Tristancho, Abel & Carazo, Ana F. & Brey, Raúl, 2021. "A study of the willingness of Spanish drivers to pay a premium for ZEVs," Energy Policy, Elsevier, vol. 149(C).
    14. Li, Guodong & Walls, W.D. & Zheng, Xiaoli, 2023. "Differential license plate pricing and electric vehicle adoption in Shanghai, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 172(C).
    15. Sheldon, Tamara L. & Dua, Rubal, 2024. "The dynamic role of subsidies in promoting global electric vehicle sales," Transportation Research Part A: Policy and Practice, Elsevier, vol. 187(C).
    16. Danhua Ouyang & Xunmin Ou & Qian Zhang & Changgui Dong, 2020. "Factors influencing purchase of electric vehicles in China," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(3), pages 413-440, March.
    17. Kantapich Preedakorn & David Butler & Jörn Mehnen, 2023. "Challenges for the Adoption of Electric Vehicles in Thailand: Potential Impacts, Barriers, and Public Policy Recommendations," Sustainability, MDPI, vol. 15(12), pages 1-21, June.
    18. Carley, Sanya & Zirogiannis, Nikolaos & Siddiki, Saba & Duncan, Denvil & Graham, John D., 2019. "Overcoming the shortcomings of U.S. plug-in electric vehicle policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    19. Guevara, C. Angelo & Figueroa, Esteban & Munizaga, Marcela A., 2021. "Paving the road for electric vehicles: Lessons from a randomized experiment in an introduction stage market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 153(C), pages 326-340.
    20. Fanchao Liao & Eric Molin & Bert van Wee, 2017. "Consumer preferences for electric vehicles: a literature review," Transport Reviews, Taylor & Francis Journals, vol. 37(3), pages 252-275, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:165:y:2022:i:c:s0301421522001793. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.