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Consumer Preferences for Automobile Energy Efficiency Grades

Author

Listed:
  • Chang Seob Kim
  • Yoonmo Koo
  • Ie-jung Choi
  • Junhee Hong
  • Jongsu Lee

    (Technology Management, Economics and Policy Program(TEMEP), Seoul National University)

Abstract

Recently, increases in energy prices have made energy conservation and efficiency improvements even more essential than in the past. With the rising cost of oil, specifically, energy efficiency has become one of the principal factors relevant to the choice of an automobile. However, due to the difficulty experienced by general consumers in obtaining reliable information regarding energy efficiency, in many countries around the world energy efficiency label regulations have been implemented which enforce a system of energy efficiency grade labeling. In this study, consumer preferences regarding energy efficiency grade were analyzed by estimating the marginal willingness to pay and the relative importance of energy efficiency grade using several discrete choice methods, including the multinomial logit, mixed logit, and mixed multiple discrete-continuous extreme value models.

Suggested Citation

  • Chang Seob Kim & Yoonmo Koo & Ie-jung Choi & Junhee Hong & Jongsu Lee, 2009. "Consumer Preferences for Automobile Energy Efficiency Grades," TEMEP Discussion Papers 200932, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Nov 2009.
    • Handle: RePEc:snv:dp2009:200932
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    References listed on IDEAS

    as
    1. Yeonbae Kim & Gicheol Jeong & Jiwoon Ahn & Jeong-Dong Lee, 2007. "Consumer preferences for alternative fuel vehicles in South Korea," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 7(4), pages 327-342.
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    Cited by:

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    2. Givord, Pauline & Grislain-Letrémy, Céline & Naegele, Helene, 2018. "How do fuel taxes impact new car purchases? An evaluation using French consumer-level data," Energy Economics, Elsevier, vol. 74(C), pages 76-96.
    3. Acharya, Bikram & Marhold, Klaus, 2019. "Determinants of household energy use and fuel switching behavior in Nepal," Energy, Elsevier, vol. 169(C), pages 1132-1138.
    4. Kim, Kyungah & Lee, Jongsu & Kim, Junghun, 2021. "Can liquefied petroleum gas vehicles join the fleet of alternative fuel vehicles? Implications of transportation policy based on market forecast and environmental impact," Energy Policy, Elsevier, vol. 154(C).
    5. Park, Yuri & Koo, Yoonmo, 2016. "An empirical analysis of switching cost in the smartphone market in South Korea," Telecommunications Policy, Elsevier, vol. 40(4), pages 307-318.
    6. Voltes-Dorta, Augusto & Perdiguero, Jordi & Jiménez, Juan Luis, 2013. "Are car manufacturers on the way to reduce CO2 emissions?: A DEA approach," Energy Economics, Elsevier, vol. 38(C), pages 77-86.
    7. Acharya, Bikram & Lee, Jongsu & Moon, HyungBin, 2022. "Preference heterogeneity of local government for implementing ICT infrastructure and services through public-private partnership mechanism," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).
    8. Acharya, Bikram & Adhikari, Santosh, 2021. "Household energy consumption and adaptation behavior during crisis: Evidence from Indian economic blockade on Nepal," Energy Policy, Elsevier, vol. 148(PB).
    9. HyungBin Moon & Hyunhong Choi & Jongsu Lee & Ki Soo Lee, 2017. "Attitudes in Korea toward Introducing Smart Policing Technologies: Differences between the General Public and Police Officers," Sustainability, MDPI, vol. 9(10), pages 1-17, October.

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    More about this item

    Keywords

    multinomial logit; mixed logit; multiple discrete-continuous extreme value; energy efficiency grade; willingness to pay; relative importance;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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