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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
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    References listed on IDEAS

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    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.
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    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.

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