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

Dandan Ji and Hongcheng Gan

Energy Policy, 2022, vol. 165, issue C

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.

Keywords: Purchasing intent; Electric vehicles; Life cycle cost; Total cost of ownership; Rank-ordered logit; Young consumers (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:165:y:2022:i:c:s0301421522001793

DOI: 10.1016/j.enpol.2022.112954

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