IDEAS home Printed from https://ideas.repec.org/p/biw/wpaper/88.html
   My bibliography  Save this paper

The impact of government policy on preference for NEVs: the evidence from China

Author

Listed:
  • Xian Zhang
  • Ke Wang
  • Yu Hao
  • Yi-Ming Wei

    () (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology)

  • Jing-Li Fan

Abstract

To reduce gasoline consumption and emissions, the Chinese government has introduced a series of preferential policies to encourage the purchase of New-Energy Vehicles (NEVs). However, enthusiasm for the private purchase of NEVs appears to be very low. This timely paper addresses the need for an empirical study to explore this phenomenon by identifying purchase motivations of potential NEV consumers and examining the impact of government policies introduced to promote NEVs in China. A questionnaire survey was carried out. The acceptance of NEVs is measured in three different Logistic models: the willingness of consumers to purchase NEVs, the purchasing time and the acceptable price, the establishment of three multivariate logistic regression models. The results showed that financial benefits, performance attributes, environmental awareness and psychological needs are the four most important factors influencing consumers' acceptance of NEVs. Among these, performance attributes rather than financial benefits is the most important indicator. The moderating effect of government policies to relations between purchasing intention, time and price is not strong as respected while the policy implications are clear that the 'public awareness of government policy' functions as a moderator in the process of acceptance. These findings could give some hints to the government to make better NEV industry policy.

Suggested Citation

  • Xian Zhang & Ke Wang & Yu Hao & Yi-Ming Wei & Jing-Li Fan, 2016. "The impact of government policy on preference for NEVs: the evidence from China," CEEP-BIT Working Papers 88, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
  • Handle: RePEc:biw:wpaper:88
    as

    Download full text from publisher

    File URL: http://ceep.bit.edu.cn/docs/2018-10/20181011145154401795.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. de Haan, Peter & Mueller, Michel G. & Peters, Anja, 2006. "Does the hybrid Toyota Prius lead to rebound effects? Analysis of size and number of cars previously owned by Swiss Prius buyers," Ecological Economics, Elsevier, vol. 58(3), pages 592-605, June.
    2. Kang, Min Jung & Park, Heejun, 2011. "Impact of experience on government policy toward acceptance of hydrogen fuel cell vehicles in Korea," Energy Policy, Elsevier, vol. 39(6), pages 3465-3475, June.
    3. Robin Segal, 1995. "Forecasting the Market for Electric Vehicles in California Using Conjoint Analysis," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 89-112.
    4. Arie Beresteanu & Shanjun Li, 2011. "Gasoline Prices, Government Support, And The Demand For Hybrid Vehicles In The United States," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(1), pages 161-182, February.
    5. Zhang, Yong & Yu, Yifeng & Zou, Bai, 2011. "Analyzing public awareness and acceptance of alternative fuel vehicles in China: The case of EV," Energy Policy, Elsevier, vol. 39(11), pages 7015-7024.
    6. Gallagher, Kelly Sims & Muehlegger, Erich, 2011. "Giving green to get green? Incentives and consumer adoption of hybrid vehicle technology," Journal of Environmental Economics and Management, Elsevier, vol. 61(1), pages 1-15, January.
    7. Turrentine, Tom & Kurani, Kenneth S, 2007. "Car buyers and fuel economy?," Institute of Transportation Studies, Working Paper Series qt56x845v4, Institute of Transportation Studies, UC Davis.
    8. Diamond, David, 2009. "The impact of government incentives for hybrid-electric vehicles: Evidence from US states," Energy Policy, Elsevier, vol. 37(3), pages 972-983, March.
    9. Zhang, Qingyu & Tian, Weili & Zheng, Yingyue & Zhang, Lili, 2010. "Fuel consumption from vehicles of China until 2030 in energy scenarios," Energy Policy, Elsevier, vol. 38(11), pages 6860-6867, November.
    10. Yan, Xiaoyu & Crookes, Roy J., 2009. "Reduction potentials of energy demand and GHG emissions in China's road transport sector," Energy Policy, Elsevier, vol. 37(2), pages 658-668, February.
    11. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    12. Mourato, Susana & Saynor, Bob & Hart, David, 2004. "Greening London's black cabs: a study of driver's preferences for fuel cell taxis," Energy Policy, Elsevier, vol. 32(5), pages 685-695, March.
    13. Hu, Xiaojun & Chang, Shiyan & Li, Jingjie & Qin, Yining, 2010. "Energy for sustainable road transportation in China: Challenges, initiatives and policy implications," Energy, Elsevier, vol. 35(11), pages 4289-4301.
    14. Kahn, Matthew E., 2007. "Do greens drive Hummers or hybrids? Environmental ideology as a determinant of consumer choice," Journal of Environmental Economics and Management, Elsevier, vol. 54(2), pages 129-145, September.
    15. Chandra, Ambarish & Gulati, Sumeet & Kandlikar, Milind, 2010. "Green drivers or free riders? An analysis of tax rebates for hybrid vehicles," Journal of Environmental Economics and Management, Elsevier, vol. 60(2), pages 78-93, September.
    16. Yamamoto, Yoshihiro & Suzuki, Akihiko & Fuwa, Yasuhiro & Sato, Tomohiro, 2008. "Decision-making in electrical appliance use in the home," Energy Policy, Elsevier, vol. 36(5), pages 1679-1686, May.
    17. Zhang, Yong & Yu, Yifeng & Li, Tiezhu & Zou, Bai, 2011. "Analyzing Chinese consumers' perception for biofuels implementation: The private vehicles owner's investigating in Nanjing," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(5), pages 2299-2309, June.
    18. Erdem, Cumhur & Sentürk, Ismail & Simsek, Türker, 2010. "Identifying the factors affecting the willingness to pay for fuel-efficient vehicles in Turkey: A case of hybrids," Energy Policy, Elsevier, vol. 38(6), pages 3038-3043, June.
    19. Romm, Joseph, 2006. "The car and fuel of the future," Energy Policy, Elsevier, vol. 34(17), pages 2609-2614, November.
    20. Yetano Roche, María & Mourato, Susana & Fischedick, Manfred & Pietzner, Katja & Viebahn, Peter, 2010. "Public attitudes towards and demand for hydrogen and fuel cell vehicles: A review of the evidence and methodological implications," Energy Policy, Elsevier, vol. 38(10), pages 5301-5310, October.
    21. Li, Zhe & Ouyang, Minggao, 2011. "The pricing of charging for electric vehicles in China—Dilemma and solution," Energy, Elsevier, vol. 36(9), pages 5765-5778.
    22. Ozaki, Ritsuko & Sevastyanova, Katerina, 2011. "Going hybrid: An analysis of consumer purchase motivations," Energy Policy, Elsevier, vol. 39(5), pages 2217-2227, May.
    23. Wang, Zhao & Jin, Yuefu & Wang, Michael & Wei, Wu, 2010. "New fuel consumption standards for Chinese passenger vehicles and their effects on reductions of oil use and CO2 emissions of the Chinese passenger vehicle fleet," Energy Policy, Elsevier, vol. 38(9), pages 5242-5250, September.
    24. Howell, Jane M. & Shea, Christine M. & Higgins, Christopher A., 2005. "Champions of product innovations: defining, developing, and validating a measure of champion behavior," Journal of Business Venturing, Elsevier, vol. 20(5), pages 641-661, September.
    25. O'Garra, Tanya & Mourato, Susana & Garrity, Lisa & Schmidt, Patrick & Beerenwinkel, Anne & Altmann, Matthias & Hart, David & Graesel, Cornelia & Whitehouse, Simon, 2007. "Is the public willing to pay for hydrogen buses? A comparative study of preferences in four cities," Energy Policy, Elsevier, vol. 35(7), pages 3630-3642, July.
    26. Turrentine, Thomas S. & Kurani, Kenneth S., 2007. "Car buyers and fuel economy?," Energy Policy, Elsevier, vol. 35(2), pages 1213-1223, February.
    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. Zhaohua Wang & Xiaoyang Dong, 2016. "Determinants and policy implications of residents’ new energy vehicle purchases: the evidence from China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 82(1), pages 155-173, May.
    2. repec:gam:jsusta:v:10:y:2018:i:3:p:672-:d:134266 is not listed on IDEAS
    3. repec:eee:enepol:v:130:y:2019:i:c:p:22-31 is not listed on IDEAS
    4. repec:gam:jsusta:v:11:y:2019:i:11:p:3164-:d:237384 is not listed on IDEAS
    5. repec:eee:enepol:v:121:y:2018:i:c:p:13-24 is not listed on IDEAS
    6. repec:eee:transa:v:110:y:2018:i:c:p:57-72 is not listed on IDEAS
    7. repec:gam:jsusta:v:11:y:2019:i:12:p:3323-:d:240257 is not listed on IDEAS
    8. repec:spr:nathaz:v:87:y:2017:i:2:d:10.1007_s11069-017-2803-9 is not listed on IDEAS
    9. Sierzchula, William & Bakker, Sjoerd & Maat, Kees & van Wee, Bert, 2014. "The influence of financial incentives and other socio-economic factors on electric vehicle adoption," Energy Policy, Elsevier, vol. 68(C), pages 183-194.
    10. repec:gam:jsusta:v:10:y:2018:i:6:p:1933-:d:151554 is not listed on IDEAS
    11. repec:gam:jsusta:v:10:y:2018:i:9:p:3194-:d:168203 is not listed on IDEAS
    12. repec:eee:enepol:v:110:y:2017:i:c:p:609-618 is not listed on IDEAS
    13. Li, Wenbo & Long, Ruyin & Chen, Hong, 2016. "Consumers’ evaluation of national new energy vehicle policy in China: An analysis based on a four paradigm model," Energy Policy, Elsevier, vol. 99(C), pages 33-41.
    14. Shanyong Wang & Jin Fan & Dingtao Zhao & Shu Yang & Yuanguang Fu, 2016. "Predicting consumers’ intention to adopt hybrid electric vehicles: using an extended version of the theory of planned behavior model," Transportation, Springer, vol. 43(1), pages 123-143, January.
    15. repec:eee:transa:v:105:y:2017:i:c:p:14-26 is not listed on IDEAS
    16. Wolf, Ingo & Schröder, Tobias & Neumann, Jochen & de Haan, Gerhard, 2015. "Changing minds about electric cars: An empirically grounded agent-based modeling approach," Technological Forecasting and Social Change, Elsevier, vol. 94(C), pages 269-285.
    17. repec:gam:jsusta:v:10:y:2018:i:12:p:4827-:d:191359 is not listed on IDEAS
    18. Shanyong Wang & Jin Fan & Dingtao Zhao & Shu Yang & Yuanguang Fu, 2016. "Predicting consumers’ intention to adopt hybrid electric vehicles: using an extended version of the theory of planned behavior model," Transportation, Springer, vol. 43(1), pages 123-143, January.
    19. repec:eee:appene:v:209:y:2018:i:c:p:478-488 is not listed on IDEAS
    20. repec:eee:transa:v:117:y:2018:i:c:p:58-69 is not listed on IDEAS
    21. repec:eee:enepol:v:122:y:2018:i:c:p:701-714 is not listed on IDEAS
    22. repec:eee:transa:v:103:y:2017:i:c:p:185-197 is not listed on IDEAS
    23. repec:eee:energy:v:159:y:2018:i:c:p:799-809 is not listed on IDEAS
    24. 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.

    More about this item

    Keywords

    New Energy Vehicles; Government Policy; Purchasing Motivations;

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:biw:wpaper:88. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhi-Fu Mi). General contact details of provider: http://edirc.repec.org/data/cebitcn.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.