EconPapers    
Economics at your fingertips  
 

Modeling purchases of new cars: an analysis of the 2014 French market

Anna Fernández-Antolín (), Matthieu Lapparent () and Michel Bierlaire ()
Additional contact information
Anna Fernández-Antolín: School of Architecture, Civil and Environmental Engineering
Matthieu Lapparent: School of Business and Engineering Vaud (HEIG-VD)
Michel Bierlaire: School of Architecture, Civil and Environmental Engineering

Theory and Decision, 2018, vol. 84, issue 2, 277-303

Abstract: Abstract This paper analyzes and compares different policy scenarios as well as discusses price elasticities and willingness to pay and to accept using revealed preference (RP) data from the French new-car market in 2014 by means of a cross-nested logit (CNL) model. We focus particularly on electric and hybrid vehicles. We use interactions between the cost (both fixed and running costs) and the household income to analyze the sensitivity towards different policy scenarios per income level. Results show that the willingness to pay and to accept obtained in our study is consistent with the real-market conditions. We also find that the most effective scenario to increase the market shares of new sold electric vehicles is that of a major technological advance such as a decrease in price due to cheaper manufacturing costs and an increase in driving range, rather than a policy-based scenario. In addition, the market segment that has more potential to increase the market shares of electric vehicle purchase is the middle-income level. In the paper, we discuss how to overcome the difficulties of working with revealed preference data, and propose multiple imputations to impute the attributes of the unchosen alternatives, by drawing from their empirical distributions.

Keywords: Car-type choice; Policy analysis; Revealed preference data; Cross-nested logit (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s11238-017-9631-y Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:theord:v:84:y:2018:i:2:d:10.1007_s11238-017-9631-y

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/11238/PS2

Access Statistics for this article

Theory and Decision is currently edited by Mohammed Abdellaoui

More articles in Theory and Decision from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-11-06
Handle: RePEc:kap:theord:v:84:y:2018:i:2:d:10.1007_s11238-017-9631-y