IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v188y2024ics0965856424002362.html
   My bibliography  Save this article

The willingness to pay for the automated vehicle subscription: Insights from a car-oriented population in China

Author

Listed:
  • Guan, Jinping
  • Chen, Kexin
  • Mao, Runfei
  • Shamshiripour, Ali
  • Zhang, Xiaochun
  • Liang, Chen
  • Ben-Akiva, Moshe

Abstract

In the rapidly advancing field of automated driving systems, the automated vehicle subscription (AVS) can provide the easiness of trialing the latest automated vehicle (AV) technologies at a monthly cost and gather significant customer interest. However, a gap in the literature remains regarding attitudes and willingness to pay (WTP) towards this innovative business model AVS, which is an alternative to the widely studied Self-owned AV and shared AV (SAV). Thus, we conducted a stated preference (SP) survey among the car-oriented population in China to assess the willingness to pay for the automated vehicle subscription, investigating its potential among the non-automated vehicle, Self-owned AV, and SAV. In the context of level 4 AVs, mixed logit model results reveal that automated vehicle subscription stands out among all AV alternatives, with all respondents demonstrating a positive willingness to pay for the automated vehicle subscription. In comparison, respectively 96 % and 71 % of the respondents have a positive willingness to pay for the Self-owned AV and SAV. Meanwhile, compared to a non-automated vehicle with a fixed ownership cost of 300 K CNY (1CNY = 0.14US$) and assuming a 10-CNY trip cost for the most frequent trip, the median willingness to pay of an AV is (1) 3 K CNY/month for the automated vehicle subscription; (2) an extra 130 K CNY for a Self-owned AV; (3) 418 CNY/month for an SAV. Furthermore, the purpose of travel, income, and individual attitudes toward automated driving significantly influence the willingness to pay for the automated vehicle subscription. Notably, individuals traveling for business purpose and belonging to the high-income group show a stronger inclination towards the automated vehicle subscription. Overall, automated vehicle subscription has a high willingness to pay and is shown to be a promising path forward in AV adoption.

Suggested Citation

  • Guan, Jinping & Chen, Kexin & Mao, Runfei & Shamshiripour, Ali & Zhang, Xiaochun & Liang, Chen & Ben-Akiva, Moshe, 2024. "The willingness to pay for the automated vehicle subscription: Insights from a car-oriented population in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 188(C).
    • Handle: RePEc:eee:transa:v:188:y:2024:i:c:s0965856424002362
    DOI: 10.1016/j.tra.2024.104188
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856424002362
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tra.2024.104188?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. Aaron Kolleck, 2021. "Does Car-Sharing Reduce Car Ownership? Empirical Evidence from Germany," Sustainability, MDPI, vol. 13(13), pages 1-17, July.
    2. Millard-Ball, Adam, 2019. "The autonomous vehicle parking problem," Transport Policy, Elsevier, vol. 75(C), pages 99-108.
    3. M. Mitchell Waldrop, 2015. "Autonomous vehicles: No drivers required," Nature, Nature, vol. 518(7537), pages 20-23, February.
    4. Malokin, Aliaksandr & Circella, Giovanni & Mokhtarian, Patricia L., 2019. "How do activities conducted while commuting influence mode choice? Using revealed preference models to inform public transportation advantage and autonomous vehicle scenarios," Transportation Research Part A: Policy and Practice, Elsevier, vol. 124(C), pages 82-114.
    5. Xiaobei Jiang & Wenlin Yu & Wenjie Li & Jiawen Guo & Xizheng Chen & Hongwei Guo & Wuhong Wang & Tao Chen, 2021. "Factors Affecting the Acceptance and Willingness-to-Pay of End-Users: A Survey Analysis on Automated Vehicles," Sustainability, MDPI, vol. 13(23), pages 1-12, November.
    6. Guan, Jinping & Du, Xinyu & Zhang, Jiayue & Maymin, Philip & DeSoto, Emma & Langer, Ellen & He, Zhengbing, 2024. "Private vehicle drivers’ acceptance of autonomous vehicles: The role of trait mindfulness," Transport Policy, Elsevier, vol. 149(C), pages 211-221.
    7. Elvik, Rune, 2020. "The demand for automated vehicles: A synthesis of willingness-to-pay surveys," Economics of Transportation, Elsevier, vol. 23(C).
    8. Saeed, Tariq Usman & Burris, Mark W. & Labi, Samuel & Sinha, Kumares C., 2020. "An empirical discourse on forecasting the use of autonomous vehicles using consumers’ preferences," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    9. Bliemer, Michiel C.J. & Rose, John M., 2013. "Confidence intervals of willingness-to-pay for random coefficient logit models," Transportation Research Part B: Methodological, Elsevier, vol. 58(C), pages 199-214.
    10. Bansal, Prateek & Kockelman, Kara M., 2017. "Forecasting Americans’ long-term adoption of connected and autonomous vehicle technologies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 95(C), pages 49-63.
    11. Aggelos Soteropoulos & Martin Berger & Francesco Ciari, 2019. "Impacts of automated vehicles on travel behaviour and land use: an international review of modelling studies," Transport Reviews, Taylor & Francis Journals, vol. 39(1), pages 29-49, January.
    12. Jiang, Ying & Guo, Zijian & Zhang, Runsen & Zong, Weiyan & Zhang, Junyi, 2023. "How do expected changes in life affect young people's stated ownership of privately-owned autonomous vehicles: A comparative study," Transport Policy, Elsevier, vol. 135(C), pages 71-81.
    13. Gurumurthy, Krishna Murthy & Kockelman, Kara M., 2020. "Modeling Americans’ autonomous vehicle preferences: A focus on dynamic ride-sharing, privacy & long-distance mode choices," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    14. Faber, Koen & van Lierop, Dea, 2020. "How will older adults use automated vehicles? Assessing the role of AVs in overcoming perceived mobility barriers," Transportation Research Part A: Policy and Practice, Elsevier, vol. 133(C), pages 353-363.
    15. Peng Liu & Run Yang & Zhigang Xu, 2019. "Public Acceptance of Fully Automated Driving: Effects of Social Trust and Risk/Benefit Perceptions," Risk Analysis, John Wiley & Sons, vol. 39(2), pages 326-341, February.
    16. Hao Yin & Elisabetta Cherchi, 2024. "Willingness to pay for automated taxis: a stated choice experiment to measure the impact of in-vehicle features and customer reviews," Transportation, Springer, vol. 51(1), pages 51-72, February.
    17. Ben-Akiva, Moshe & McFadden, Daniel & Train, Kenneth & Börsch-Supan, Axel, 2002. "Hybrid Choice Models: Progress and Challenges," Sonderforschungsbereich 504 Publications 02-29, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    18. Guan, Jinping & Xu, Chengzhong, 2018. "Are relocatees different from others? Relocatee’s travel mode choice and travel equity analysis in large-scale residential areas on the periphery of megacity Shanghai, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 162-173.
    19. Wang, Kaili & Salehin, Mohammad Faizus & Nurul Habib, Khandker, 2021. "A discrete choice experiment on consumer’s willingness-to-pay for vehicle automation in the Greater Toronto Area," Transportation Research Part A: Policy and Practice, Elsevier, vol. 149(C), pages 12-30.
    20. Jamie M. Chen & Jesper de Groote & James F. Petrick & Tracy Lu & Peter Nijkamp, 2020. "Travellers’ willingness to pay and perceived value of time in ride-sharing: an experiment on China," Current Issues in Tourism, Taylor & Francis Journals, vol. 23(23), pages 2972-2985, December.
    21. Jing-Zhi Huang & Zhan Shi, 2021. "What Do We Know About Corporate Bond Returns?," Annual Review of Financial Economics, Annual Reviews, vol. 13(1), pages 363-399, November.
    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. Chen, Kexin & Shamshiripour, Ali & Seshadri, Ravi & Hasnine, Md Sami & Yoo, Lisa & Guan, Jinping & Alho, Andre Romano & Feldman, Daniel & Ben-Akiva, Moshe, 2024. "Potential short- to long-term impacts of on-demand urban air mobility on transportation demand in North America," Transportation Research Part A: Policy and Practice, Elsevier, vol. 190(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. Li, Dun & Huang, Youlin & Qian, Lixian, 2022. "Potential adoption of robotaxi service: The roles of perceived benefits to multiple stakeholders and environmental awareness," Transport Policy, Elsevier, vol. 126(C), pages 120-135.
    2. Shelly Etzioni & Jamil Hamadneh & Arnór B. Elvarsson & Domokos Esztergár-Kiss & Milena Djukanovic & Stelios N. Neophytou & Jaka Sodnik & Amalia Polydoropoulou & Ioannis Tsouros & Cristina Pronello & N, 2020. "Modeling Cross-National Differences in Automated Vehicle Acceptance," Sustainability, MDPI, vol. 12(22), pages 1-22, November.
    3. Jiang, Like & Chen, Haibo & Paschalidis, Evangelos, 2023. "Diffusion of connected and autonomous vehicles concerning mode choice, policy interventions and sustainability impacts: A system dynamics modelling study," Transport Policy, Elsevier, vol. 141(C), pages 274-290.
    4. McLeay, Fraser & Olya, Hossein & Liu, Hongfei & Jayawardhena, Chanaka & Dennis, Charles, 2022. "A multi-analytical approach to studying customers motivations to use innovative totally autonomous vehicles," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    5. Devon McAslan & Farah Najar Arevalo & David A. King & Thaddeus R. Miller, 2021. "Pilot project purgatory? Assessing automated vehicle pilot projects in U.S. cities," Palgrave Communications, Palgrave Macmillan, vol. 8(1), pages 1-16, December.
    6. Yoo, Sunbin & Kumagai, Junya & Kawabata, Yuta & Keeley, Alexander & Managi, Shunsuke, 2021. "Willingness to Buy and/or Pay Disparity: Evidence from Fully Autonomous Vehicles," MPRA Paper 108882, University Library of Munich, Germany.
    7. Sharma, Ishant & Mishra, Sabyasachee, 2022. "Quantifying the consumer’s dependence on different information sources on acceptance of autonomous vehicles," Transportation Research Part A: Policy and Practice, Elsevier, vol. 160(C), pages 179-203.
    8. Hassan, Hany M. & Ferguson, Mark R. & Vrkljan, Brenda & Newbold, Bruce & Razavi, Saiedeh, 2021. "Older adults and their willingness to use semi and fully autonomous vehicles: A structural equation analysis11Revised manuscript prepared for publication at the special issue in Journal of Transport G," Journal of Transport Geography, Elsevier, vol. 95(C).
    9. Hamadneh, Jamil & Duleba, Szabolcs & Esztergár-Kiss, Domokos, 2022. "Stakeholder viewpoints analysis of the autonomous vehicle industry by using multi-actors multi-criteria analysis," Transport Policy, Elsevier, vol. 126(C), pages 65-84.
    10. Lindgren, Thomas & Pink, Sarah & Fors, Vaike, 2021. "Fore-sighting autonomous driving - An Ethnographic approach," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    11. Dubey, Subodh & Sharma, Ishant & Mishra, Sabyasachee & Cats, Oded & Bansal, Prateek, 2022. "A General Framework to Forecast the Adoption of Novel Products: A Case of Autonomous Vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 165(C), pages 63-95.
    12. Ziakopoulos, Apostolos & Oikonomou, Maria G. & Vlahogianni, Eleni I. & Yannis, George, 2021. "Quantifying the implementation impacts of a point to point automated urban shuttle service in a large-scale network," Transport Policy, Elsevier, vol. 114(C), pages 233-244.
    13. Guo, Yuntao & Souders, Dustin & Labi, Samuel & Peeta, Srinivas & Benedyk, Irina & Li, Yujie, 2021. "Paving the way for autonomous Vehicles: Understanding autonomous vehicle adoption and vehicle fuel choice under user heterogeneity," Transportation Research Part A: Policy and Practice, Elsevier, vol. 154(C), pages 364-398.
    14. Iva Bojic & Dániel Kondor & Wei Tu & Ke Mai & Paolo Santi & Carlo Ratti, 2021. "Identifying the Potential for Partial Integration of Private and Public Transportation," Sustainability, MDPI, vol. 13(6), pages 1-16, March.
    15. Jörg Sonnleitner & Markus Friedrich & Emely Richter, 2022. "Impacts of highly automated vehicles on travel demand: macroscopic modeling methods and some results," Transportation, Springer, vol. 49(3), pages 927-950, June.
    16. Peng Jing & Hao Huang & Bin Ran & Fengping Zhan & Yuji Shi, 2019. "Exploring the Factors Affecting Mode Choice Intention of Autonomous Vehicle Based on an Extended Theory of Planned Behavior—A Case Study in China," Sustainability, MDPI, vol. 11(4), pages 1-20, February.
    17. Talebian, Ahmadreza & Mishra, Sabyasachee, 2022. "Unfolding the state of the adoption of connected autonomous trucks by the commercial fleet owner industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    18. Peng Jing & Gang Xu & Yuexia Chen & Yuji Shi & Fengping Zhan, 2020. "The Determinants behind the Acceptance of Autonomous Vehicles: A Systematic Review," Sustainability, MDPI, vol. 12(5), pages 1-26, February.
    19. Konrad Hryniewicz & Tomasz Grzegorczyk, 2020. "How different autonomous vehicle presentation influences its acceptance: Is a communal car better than agentic one?," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-28, September.
    20. Pudāne, Baiba, 2019. "Departure Time Choice and Bottleneck Congestion with Automated Vehicles: Role of On-board Activities," MPRA Paper 96328, University Library of Munich, Germany.

    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:transa:v:188:y:2024:i:c:s0965856424002362. 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/wps/find/journaldescription.cws_home/547/description#description .

    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.