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Interventions to reverse the trend towards light-duty trucks in Canada

Author

Listed:
  • Verena Gruber
  • Ingrid Peignier
  • Elinora Pentcheva
  • Anshu Suri

Abstract

The primary objective of this report was to investigate the effectiveness of different messages to mitigate the liking and purchase of energy-intensive vehicles, particularly sport utility vehicles (SUVs). It presents the results of four experimental studies on both topics relevant to policymakers (i.e., regulating price presentation and working on financial empowerment initiatives to increase citizens' numerical and financial literacy) and topics that can be leveraged in social marketing campaigns to help reverse the trend toward energy-intensive vehicles. Specifically, three experiments testing aspects of personal identity, social norms, and time orientation find the following: • Creating negative perceptions of SUV drivers as people with below-average driving skills significantly reduces both appreciation of SUVs and intention to purchase an SUV, regardless of whether the individual already owns a gas-guzzling vehicle. • Changing the social norm around SUVs: SUVs have become a social norm as they were the top selling vehicle in Canada in 2020, and the literature in the field clearly demonstrates the importance of social norms in influencing consumer decision-making. Our results show that these norms can also be used to counter the trend toward gas-guzzlers by emphasizing that compact cars are the normal vehicle to choose. • Get the public to think about the legacy left to their children by purchasing a light truck using time-based cues: highlighting a future orientation decreases the liking and intention to purchase energy-intensive vehicles. The intervention is particularly effective for individuals who already recognize the environmental impact of personal transport. • Building individual capacity to consider all vehicle costs: We find that while individuals are generally able to stay within their budgets, those with low levels of numerical and financial literacy, as well as those who are financially dissatisfied (regardless of their level of literacy), make many more choices that exceed their budgets. This experience underscores the importance of initiatives to improve financial literacy, as particularly vulnerable consumers appear to be attracted to SUV purchases. The research documented in this second report builds directly on the results of the exploratory phase documented in the CIRANO 2021RP-06 project report which assessed the motivations, attitudes and contextual factors influencing vehicle choices among Canadians and empirically tests the effectiveness of different messages in addressing the trend towards fuel-inefficient vehicles in Canada. L'objectif principal de ce rapport était d'étudier l'efficacité de différents messages visant à atténuer le goût et l'achat de véhicules à forte consommation d'énergie, en particulier les véhicules utilitaires sport (VUS). Il présente les résultats de quatre études expérimentales portant à la fois sur des thèmes pertinents pour les décideurs politiques (c'est-à-dire réglementer la présentation des prix et travailler sur des initiatives de renforcement des capacités financières afin de renforcer les connaissances numériques et financières des citoyens) et sur des thèmes qui peuvent être exploités dans des campagnes de marketing social pour aider à inverser la tendance vers des véhicules à forte consommation d'énergie. Plus précisément, trois expériences testant des aspects de l'identité personnelle, des normes sociales et de l'orientation temporelle permettent de constater ce qui suit : • Créer des perceptions négatives des conducteurs de SUV en tant que personnes ayant des compétences de conduite inférieures à la moyenne contribue à réduire de manière significative à la fois l'appréciation des VUS et l'intention d'acheter un VUS, indépendamment du fait que la personne possède déjà un véhicule énergivore ou non. • Changer la norme sociale autour des VUS : Les VUS sont devenus une norme sociale de facto puisqu'ils étaient les véhicules les plus vendus au Canada en 2020, et la littérature dans le domaine démontre clairement l'importance des normes sociales pour influencer la prise de décision des consommateurs. Nos résultats montrent que ces normes peuvent également être utilisées pour contrer la tendance aux véhicules énergivores en soulignant que les voitures de taille compacte sont le véhicule normal à choisir. • Amener le public a? re?fle?chir a? l’he?ritage laisse? a? ses enfants en achetant un camion le?ger a? l’aide de repe?res temporels : le fait de faire ressortir une orientation vers l'avenir permet de diminuer le goût et l'intention d'achat de véhicules à forte consommation d'énergie. L'intervention est particulièrement efficace pour les individus qui reconnaissent déjà l'effet du transport individuel sur l'environnement. • Renforcer les capacite?s individuelles a? tenir compte de tous les cou?ts associe?s aux ve?hicules : Nous constatons que, si les individus sont généralement capables de respecter leur budget, ceux qui ont un faible niveau de compétences numériques et financières, ainsi que ceux qui sont financièrement insatisfaits (indépendamment de leur niveau de compétences), font beaucoup plus de choix qui dépassent leur budget. Cette expérience souligne l'importance des initiatives visant à améliorer les compétences financières, car les consommateurs particulièrement vulnérables semblent être attirés par l'achat de VUS. La recherche documentée dans ce deuxième rapport s'appuie directement sur les résultats de la phase exploratoire documentés dans le rapport de projet CIRANO 2021RP-06 qui a évalué les motivations, les attitudes et les facteurs contextuels influençant les choix de véhicules chez les Canadiens et teste empiriquement l'efficacité de différents messages pour contrer la tendance à l'utilisation de véhicules énergivores au Canada.

Suggested Citation

  • Verena Gruber & Ingrid Peignier & Elinora Pentcheva & Anshu Suri, 2021. "Interventions to reverse the trend towards light-duty trucks in Canada," CIRANO Project Reports 2021rp-29, CIRANO.
  • Handle: RePEc:cir:cirpro:2021rp-29
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    File URL: https://cirano.qc.ca/files/publications/2021RP-29.pdf
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    References listed on IDEAS

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    Cited by:

    1. Verena Gruber & Ingrid Peignier & Charlotte Dubuc, 2024. "Pratiques et tactiques de vente des concessionnaires automobiles au Québec," CIRANO Project Reports 2023rp-21, CIRANO.

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    More about this item

    Keywords

    SUVs; Light trucks; Experimental economics; Consumer behavior; Social marketing; VUS; Camions légers; Économie expérimentale; Comportement du consommateur; marketing social;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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