Willingness to pay and attitudinal preferences of Indian consumers for electric vehicles

Prateek Bansal, Rajeev Ranjan Kumar, Alok Raj, Subodh Dubey and Daniel J. Graham

Energy Economics, 2021, vol. 100, issue C

Abstract: Consumer preference elicitation is critical to devise effective policies for the diffusion of electric vehicles (EVs) in India. This study contributes to the EV demand literature in the Indian context by (a) analysing the EV attributes and attitudinal factors of Indian car buyers that determine consumers' preferences for EVs, (b) estimating Indian consumers' willingness to pay (WTP) to buy EVs with improved attributes, and c) quantifying how the reference dependence affects the WTP estimates. We adopt a hybrid choice modelling approach for this study. The results indicate that accounting for reference dependence provides more realistic WTP estimates than the standard utility estimation approach. Our results suggest that Indian consumers are willing to pay an additional US$10–34 in the purchase price to reduce the fast charging time by 1 min, US$7–40 to add a kilometre to the driving range of EVs at 200 km, and US$104–692 to save US$1 per 100 km in operating cost. These estimates and the effect of attitudes on the likelihood to adopt EVs provide insights about EV design, marketing strategies, and pro-EV policies (e.g., specialised lanes and reserved parking for EVs) to expedite the adoption of EVs in India.

Keywords: Electric vehicle, Willingness to pay; Hybrid choice model; Reference dependence; Indian consumers (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:100:y:2021:i:c:s0140988321002462

DOI: 10.1016/j.eneco.2021.105340

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