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Heterogeneity in electric light commercial vehicle preferences among small and medium enterprises

Author

Listed:
  • Saba, Nadiya
  • Ryan, Lisa
  • Reynolds-Feighan, Aisling J.

Abstract

The transport sector remains one of Europe’s largest energy consumers, facing challenges like carbon emissions, fossil fuel dependency, and environmental impact. Electric vehicles offer a viable solution toward a low-carbon transportation system for freight. This study surveyed 446 Irish small and medium-sized enterprises, gathering 2,676 observations through a discrete choice experiment to assess vehicle preferences among internal combustion engine, battery electric, and plug-in hybrid electric vehicles. Firms showed willingness to pay: €43 per additional kilometer of range, €42 per €100 reduction in fuel cost savings, and €60 for every hour of charging time reduced. These findings suggest that operational efficiency significantly impacts purchasing decisions, often outweighing the upfront costs. Latent class analysis found two distinct small and medium enterprise segments: an attribute-insensitive/status quo segment and an attribute-responsive/change segment. These insights point to the urgent need for targeted policy interventions and infrastructure enhancements to support commercial enterprises, accelerating electric light commercial vehicle adoption.

Suggested Citation

  • Saba, Nadiya & Ryan, Lisa & Reynolds-Feighan, Aisling J., 2026. "Heterogeneity in electric light commercial vehicle preferences among small and medium enterprises," Transportation Research Part A: Policy and Practice, Elsevier, vol. 214(C).
    • Handle: RePEc:eee:transa:v:214:y:2026:i:c:s0965856426004222
    DOI: 10.1016/j.tra.2026.105281
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    Keywords

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    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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