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How has consumers' willingness to pay for the environmental value of new energy vehicles changed? Based on comparative surveys in 2016 and 2023

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  • Wang, Xia
  • Lin, Boqiang

Abstract

New energy vehicle (NEV) as an environmentally friendly product, the willingness to pay (WTP) for the environmental value of NEVs represents an effective investment by consumers in sustainable development. Understanding the specific value and its changes is crucial for developing the NEV industry and the progress of sustainable development. (Lin and Tan, 2017) estimated the environmental value of NEVs in 2016. Considering the significant changes in the NEV industry since then, this study re-surveyed urban residents in five provinces of China in 2023, using an ordered probit model based on the contingent valuation method (CVM) to measure changes in their WTP for the environmental value of NEVs. The findings are as follows: (1) Since 2016, urban residents have perceived substantial changes in NEV prices, costs, and performances; (2) An increasing number of people are willing to purchase NEVs, but this is tempered by factors such as insufficient range, slower charging compared to refueling, and inadequate charging infrastructure; (3) The Chinese residents' WTP for the environmental value of NEVs is 28,500 RMB, which, after adjusting for price index effects, is significantly lower than the 30,600 RMB in 2016; (4) The reasons for the decreased WTP include reduced income, higher NEV prices, increased variety and improved performance, reduced incentive policies, adequate charging infrastructure, and worsening traffic congestion. Based on these empirical results, this paper offers targeted policy recommendations.

Suggested Citation

  • Wang, Xia & Lin, Boqiang, 2024. "How has consumers' willingness to pay for the environmental value of new energy vehicles changed? Based on comparative surveys in 2016 and 2023," Research in International Business and Finance, Elsevier, vol. 72(PA).
    • Handle: RePEc:eee:riibaf:v:72:y:2024:i:pa:s0275531924003015
    DOI: 10.1016/j.ribaf.2024.102508
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    Cited by:

    1. Du, Zhili & Zhang, Guowei & Lin, Boqiang, 2024. "Exploring vehicle preference dynamics: Analyzing the influence of oil price volatility on consumer car purchase decisions - A comparative survey experiment," Energy, Elsevier, vol. 312(C).

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    More about this item

    Keywords

    New Energy Vehicles; Willingness to Pay; Contingent Valuation; Environmental Valuation;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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