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Willingness to Pay and Attitudinal Preferences of Indian Consumers for Electric Vehicles

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

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 the above analysis. 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 USD 10-34 in the purchase price to reduce the fast charging time by 1 minute, USD 7-40 to add a kilometre to the driving range of EVs at 200 kilometres, and USD 104-692 to save USD 1 per 100 kilometres 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.

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  • Prateek Bansal & Rajeev Ranjan Kumar & Alok Raj & Subodh Dubey & Daniel J. Graham, 2021. "Willingness to Pay and Attitudinal Preferences of Indian Consumers for Electric Vehicles," Papers 2101.08008, arXiv.org, revised May 2021.
    • Handle: RePEc:arx:papers:2101.08008
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    9. Jaržemskis Andrius & Jaržemskienė Ilona, 2022. "European Green Deal Implications on Country Level Energy Consumption," Folia Oeconomica Stetinensia, Sciendo, vol. 22(2), pages 97-122, December.
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    15. Paweł Bryła & Shuvam Chatterjee & Beata Ciabiada-Bryła, 2022. "Consumer Adoption of Electric Vehicles: A Systematic Literature Review," Energies, MDPI, vol. 16(1), pages 1-16, December.
    16. Callejas, Jerónimo & Linn,Joshua Abraham & Steinbuks,Jevgenijs, 2022. "Welfare and Environmental Benefits of Electric Vehicle Tax Policies in DevelopingCountries : Evidence from Colombia," Policy Research Working Paper Series 10001, The World Bank.
    17. Haidi Han & Shanxia Sun, 2024. "Identifying Heterogeneous Willingness to Pay for New Energy Vehicles Attributes: A Discrete Choice Experiment in China," Sustainability, MDPI, vol. 16(7), pages 1-24, April.
    18. Fatemeh Nazari & Abolfazl Mohammadian & Thomas Stephens, 2023. "Exploring the Role of Perceived Range Anxiety in Adoption Behavior of Plug-in Electric Vehicles," Papers 2308.10313, arXiv.org.
    19. Unnati Tuladhar & Nuttaya Yuangyai & Theerakamol Pengsakul & Saroj Gyawali, 2023. "The Determination of Willingness to Pay for Electrical Vehicles: A Literature Review," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 425-431, September.
    20. Visaria, Anant Atul & Jensen, Anders Fjendbo & Thorhauge, Mikkel & Mabit, Stefan Eriksen, 2022. "User preferences for EV charging, pricing schemes, and charging infrastructure," Transportation Research Part A: Policy and Practice, Elsevier, vol. 165(C), pages 120-143.

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