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Consumer attitudes about electric cars: Pricing analysis and policy implications

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  • Larson, Paul D.
  • Viáfara, Jairo
  • Parsons, Robert V.
  • Elias, Arne

Abstract

As electric vehicles (EVs) become more readily available, sales will depend on consumers’ interest and understanding. A survey of consumer attitudes on electric cars was conducted in Manitoba from late 2011 to early 2012. It utilizes two price assessment methods. The van Westendorp price sensitivity method (PSM) shows the acceptable price range for EVs to be $22,000–27,500. This range closely matches average price range for sales of conventional cars during the same period. The willingness-to-pay method reveals consumers are unwilling to pay large premiums for EVs, even when given information on future fuel savings. A consumer group with experience or exposure to EVs is somewhat different. Nearly 25% of these people are willing to pay a premium of up to $10,000. Different interpretations can be drawn from these responses, calling for further research. An apparent policy opportunity involves consumer education to enhance knowledge and facilitate EV purchase decisions. Survey results also support the hypothesis that EV rollout has focused too much on technology, and not enough on consumers.

Suggested Citation

  • Larson, Paul D. & Viáfara, Jairo & Parsons, Robert V. & Elias, Arne, 2014. "Consumer attitudes about electric cars: Pricing analysis and policy implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 69(C), pages 299-314.
  • Handle: RePEc:eee:transa:v:69:y:2014:i:c:p:299-314
    DOI: 10.1016/j.tra.2014.09.002
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    References listed on IDEAS

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    Cited by:

    1. Bernardo, Valeria & Borrell, Joan-Ramon & Perdiguero, Jordi, 2016. "Fast charging stations: Simulating entry and location in a game of strategic interaction," Energy Economics, Elsevier, vol. 60(C), pages 293-305.
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    8. repec:eee:enepol:v:110:y:2017:i:c:p:447-460 is not listed on IDEAS
    9. Ivana Semanjski & Sidharta Gautama, 2016. "Forecasting the State of Health of Electric Vehicle Batteries to Evaluate the Viability of Car Sharing Practices," Energies, MDPI, Open Access Journal, vol. 9(12), pages 1-17, December.
    10. She, Zhen-Yu & Qing Sun, & Ma, Jia-Jun & Xie, Bai-Chen, 2017. "What are the barriers to widespread adoption of battery electric vehicles? A survey of public perception in Tianjin, China," Transport Policy, Elsevier, vol. 56(C), pages 29-40.
    11. Noel, Lance & Sovacool, Benjamin K., 2016. "Why Did Better Place Fail?: Range anxiety, interpretive flexibility, and electric vehicle promotion in Denmark and Israel," Energy Policy, Elsevier, vol. 94(C), pages 377-386.
    12. Vassileva, Iana & Campillo, Javier, 2017. "Adoption barriers for electric vehicles: Experiences from early adopters in Sweden," Energy, Elsevier, vol. 120(C), pages 632-641.

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