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Carbon literacy, switching cost, and consumer choice: Evidence from the new energy vehicle purchase analysis

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  • Liu, Yang
  • Yang, Yugang

Abstract

Household carbon emissions account for a significant proportion of the national total emissions. Using a unique nation-wide survey data (CRECS) in 2022, this paper estimates the impact of carbon literacy on individual low-carbon consumption intentions and behavior by using the instrumental variable. Taking new Energy vehicle purchase as an example and we find that: first, carbon literacy only has a significant positive effect on purchase intentions, and does not have a significant effect on purchase behavior; and when the carbon literacy score increases by every 1 point, the individual purchase intentions will significantly increase by 0.224; second, the impact of carbon literacy on low-carbon consumption intentions is different cross education levels, regions and occupation types in China; finally, the difference between effect of carbon literacy on purchase intentions and behavior can be explained by the switching cost. The government ought to intensify efforts to enhance residents' carbon literacy and mitigate potential switching costs in order to foster low-carbon development.

Suggested Citation

  • Liu, Yang & Yang, Yugang, 2025. "Carbon literacy, switching cost, and consumer choice: Evidence from the new energy vehicle purchase analysis," Energy Policy, Elsevier, vol. 198(C).
    • Handle: RePEc:eee:enepol:v:198:y:2025:i:c:s0301421524004981
    DOI: 10.1016/j.enpol.2024.114478
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