IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v15y2022i17p6454-d906116.html
   My bibliography  Save this article

Determining Factors of Consumers’ Choice of Sport Utility Vehicles in an Isolated Energy System: How Can We Contribute to the Decarbonization of the Economy?

Author

Listed:
  • Alfredo J. Ramírez-Díaz

    (Department of Computer Sciences and System Engineering, University of La Laguna, 38203 San Cristóbal de La Laguna, Spain)

  • Francisco J. Ramos-Real

    (Department of Economics, Accounting and Finance, University of La Laguna, 38071 San Cristóbal de La Laguna, Spain
    Institute for Social Research and Tourism, University of La Laguna, 38071 San Cristóbal de La Laguna, Spain)

  • María Gracia Rodríguez-Brito

    (Department of Economics, Accounting and Finance, University of La Laguna, 38071 San Cristóbal de La Laguna, Spain)

  • María Carolina Rodríguez-Donate

    (Department of Applied Economics and Quantitative Methods, University of La Laguna, 38071 San Cristóbal de La Laguna, Spain)

  • Andrés Lorente de las Casas

    (Department of Economics, Accounting and Finance, University of La Laguna, 38071 San Cristóbal de La Laguna, Spain)

Abstract

This paper analyses the profile of individuals who decide to purchase a Sport Utility Vehicle (SUV) in a medium-sized isolated island system such as Tenerife Island. To achieve this objective, we used a survey conducted in 2017 to identify the characteristics of the individuals most likely to choose an SUV or another type of vehicle or be undecided. Subsequently, a discrete choice model was estimated to assess the probability that an individual chooses one of the three options as a function of their socio-economic characteristics, mobility routines, vehicle attributes and psychosocial traits. The results show the need to adopt energy policy measures related to vehicle choice, as they put the fulfilment of the decarbonization objectives for the energy transition in the Canary Islands at risk. Firstly, the authorities should carry out campaigns to achieve a more environmentally conscious behaviour by highlighting the higher consumption and emission levels of this type of vehicle. Secondly, subsidies for more efficient new vehicles and taxation should promote the purchase of low-emission vehicles to compensate for the greater willingness to pay of SUV buyers. In particular, purchase taxation should be linked to emission levels rather than only considering power, engine characteristics or labelling.

Suggested Citation

  • Alfredo J. Ramírez-Díaz & Francisco J. Ramos-Real & María Gracia Rodríguez-Brito & María Carolina Rodríguez-Donate & Andrés Lorente de las Casas, 2022. "Determining Factors of Consumers’ Choice of Sport Utility Vehicles in an Isolated Energy System: How Can We Contribute to the Decarbonization of the Economy?," Energies, MDPI, vol. 15(17), pages 1-21, September.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:17:p:6454-:d:906116
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/15/17/6454/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/15/17/6454/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hidrue, Michael K. & Parsons, George R. & Kempton, Willett & Gardner, Meryl P., 2011. "Willingness to pay for electric vehicles and their attributes," Resource and Energy Economics, Elsevier, vol. 33(3), pages 686-705, September.
    2. Maria Gracia Rodríguez-Brito & Alfredo J. Ramírez-Díaz & Francisco J. Ramos-Real & Yannick Perez, 2018. "Psychosocial Traits Characterizing EV Adopters’ Profiles: The Case of Tenerife (Canary Islands)," Sustainability, MDPI, vol. 10(6), pages 1-26, June.
    3. Marrero, Gustavo A. & Ramos-Real, Francisco Javier, 2010. "Electricity generation cost in isolated system: The complementarities of natural gas and renewables in the Canary Islands," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(9), pages 2808-2818, December.
    4. Farrow, Katherine & Grolleau, Gilles & Ibanez, Lisette, 2017. "Social Norms and Pro-environmental Behavior: A Review of the Evidence," Ecological Economics, Elsevier, vol. 140(C), pages 1-13.
    5. Alfredo Ramírez Díaz & Francisco J. Ramos-Real & Gustavo A. Marrero & Yannick Perez, 2015. "Impact of Electric Vehicles as Distributed Energy Storage in Isolated Systems: The Case of Tenerife," Sustainability, MDPI, vol. 7(11), pages 1-27, November.
    6. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, October.
    7. Wei‐Jin Wu & Chu‐Shiu Li & Sheng‐Chang Peng, 2020. "The relationships between vehicle characteristics and automobile accidents," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 23(4), pages 331-377, December.
    8. Alfredo Ramírez Díaz & Francisco J. Ramos-Real & Gustavo A. Marrero & Yannick Perez, 2015. "Impact of Electric Vehicles as Distributed Energy Storage in Isolated Systems: The Case of Tenerife," Sustainability, MDPI, Open Access Journal, vol. 7(11), pages 1-27, November.
    9. Higgins, Christopher D. & Mohamed, Moataz & Ferguson, Mark R., 2017. "Size matters: How vehicle body type affects consumer preferences for electric vehicles," Transportation Research Part A: Policy and Practice, Elsevier, vol. 100(C), pages 182-201.
    10. William Greene, 2009. "Discrete Choice Modeling," Palgrave Macmillan Books, in: Terence C. Mills & Kerry Patterson (ed.), Palgrave Handbook of Econometrics, chapter 11, pages 473-556, Palgrave Macmillan.
    11. Daniel McFadden, 1977. "Quantitative Methods for Analyzing Travel Behaviour of Individuals: Some Recent Developments," Cowles Foundation Discussion Papers 474, Cowles Foundation for Research in Economics, Yale University.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alfredo J. Ramírez-Díaz & Francisco J. Ramos-Real & Josue Barrera-Santana, 2023. "Well-to-Wheels for Light-Duty Vehicle Powertrains by Segments in Isolated Systems," Energies, MDPI, vol. 16(3), pages 1-25, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ramos-Real, Francisco J. & Ramírez-Díaz, Alfredo & Marrero, Gustavo A. & Perez, Yannick, 2018. "Willingness to pay for electric vehicles in island regions: The case of Tenerife (Canary Islands)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 98(C), pages 140-149.
    2. Maria Gracia Rodríguez-Brito & Alfredo J. Ramírez-Díaz & Francisco J. Ramos-Real & Yannick Perez, 2018. "Psychosocial Traits Characterizing EV Adopters’ Profiles: The Case of Tenerife (Canary Islands)," Sustainability, MDPI, vol. 10(6), pages 1-26, June.
    3. Reema Bera & Bhargab Maitra, 2021. "Analyzing Prospective Owners’ Choice Decision towards Plug-in Hybrid Electric Vehicles in Urban India: A Stated Preference Discrete Choice Experiment," Sustainability, MDPI, vol. 13(14), pages 1-24, July.
    4. Manuel Uche-Soria & Carlos Rodríguez-Monroy, 2018. "Special Regulation of Isolated Power Systems: The Canary Islands, Spain," Sustainability, MDPI, vol. 10(7), pages 1-20, July.
    5. Morton, Craig & Anable, Jillian & Yeboah, Godwin & Cottrill, Caitlin, 2018. "The spatial pattern of demand in the early market for electric vehicles: Evidence from the United Kingdom," Journal of Transport Geography, Elsevier, vol. 72(C), pages 119-130.
    6. Sharma, Reema Bera & Majumdar, Bandhan Bandhu & Maitra, Bhargab, 2024. "Commuter and non-commuter preferences for plug-in hybrid electric vehicle: A case study of Delhi and Kolkata, India," Research in Transportation Economics, Elsevier, vol. 103(C).
    7. Philip, Thara & Whitehead, Jake & Prato, Carlo G., 2023. "Adoption of electric vehicles in a laggard, car-dependent nation: Investigating the potential influence of V2G and broader energy benefits on adoption," Transportation Research Part A: Policy and Practice, Elsevier, vol. 167(C).
    8. Jia, Wenjian & Chen, T. Donna, 2023. "Investigating heterogeneous preferences for plug-in electric vehicles: Policy implications from different choice models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 173(C).
    9. Mandys, F., 2021. "Electric vehicles and consumer choices," Renewable and Sustainable Energy Reviews, Elsevier, vol. 142(C).
    10. Kougias, Ioannis & Szabó, Sándor & Nikitas, Alexandros & Theodossiou, Nicolaos, 2019. "Sustainable energy modelling of non-interconnected Mediterranean islands," Renewable Energy, Elsevier, vol. 133(C), pages 930-940.
    11. Loría, Luis Enrique & Watson, Verity & Kiso, Takahiko & Phimister, Euan, 2019. "Investigating users' preferences for Low Emission Buses: Experiences from Europe's largest hydrogen bus fleet," Journal of choice modelling, Elsevier, vol. 32(C), pages 1-1.
    12. Konstantinou, Theodora & Gkritza, Konstantina, 2023. "Are we getting close to truck electrification? U.S. truck fleet managers’ stated intentions to electrify their fleets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 173(C).
    13. Bera, Reema & Maitra, Bhargab, 2021. "Assessing consumer preferences for Plug-in Hybrid Electric Vehicle (PHEV): An Indian perspective," Research in Transportation Economics, Elsevier, vol. 90(C).
    14. Hackbarth, André & Madlener, Reinhard, 2018. "Combined Vehicle Type and Fuel Type Choices of Private Households: An Empirical Analysis for Germany," FCN Working Papers 17/2018, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN), revised May 2019.
    15. Elena Higueras-Castillo & Sebastian Molinillo & J. Andres Coca-Stefaniak & Francisco Liébana-Cabanillas, 2020. "Potential Early Adopters of Hybrid and Electric Vehicles in Spain—Towards a Customer Profile," Sustainability, MDPI, vol. 12(11), pages 1-18, May.
    16. Youssef Amry & Elhoussin Elbouchikhi & Franck Le Gall & Mounir Ghogho & Soumia El Hani, 2022. "Electric Vehicle Traction Drives and Charging Station Power Electronics: Current Status and Challenges," Energies, MDPI, vol. 15(16), pages 1-30, August.
    17. Hugo Padrón-Ávila & Raúl Hernández-Martín, 2019. "Preventing Overtourism by Identifying the Determinants of Tourists’ Choice of Attractions," Sustainability, MDPI, vol. 11(19), pages 1-17, September.
    18. Kim, Junghun & Seung, Hyunchan & Lee, Jongsu & Ahn, Joongha, 2020. "Asymmetric preference and loss aversion for electric vehicles: The reference-dependent choice model capturing different preference directions," Energy Economics, Elsevier, vol. 86(C).
    19. Robert Turner, 2013. "Using contingent choice surveys to inform national park management," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 3(2), pages 120-138, June.
    20. Noel, Lance & Papu Carrone, Andrea & Jensen, Anders Fjendbo & Zarazua de Rubens, Gerardo & Kester, Johannes & Sovacool, Benjamin K., 2019. "Willingness to pay for electric vehicles and vehicle-to-grid applications: A Nordic choice experiment," Energy Economics, Elsevier, vol. 78(C), pages 525-534.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:15:y:2022:i:17:p:6454-:d:906116. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.