Consumer preferences for electric vehicles: a literature review

Widespread adoption of electric vehicles (EVs) may contribute to the alleviation of problems such as environmental pollution, global warming and oil dependency. However, the current market penetration of EV is relatively low in spite of many governments implementing strong promotion policies. This paper presents a comprehensive review of studies on consumer preferences for EV, aiming to better inform policy-makers and give direction to further research. First, we compare the economic and psychological approach towards this topic, followed by a conceptual framework of EV preferences which is then implemented to organise our review. We also briefly review the modelling techniques applied in the selected studies. Estimates of consumer preferences for financial, technical, infrastructure and policy attributes are then reviewed. A categorisation of influential factors for consumer preferences into groups such as socio-economic variables, psychological factors, mobility condition, social influence, etc. is then made and their effects are elaborated. Finally, we discuss a research agenda to improve EV consumer preference studies and give recommendations for further research.

Abbreviations: AFV: alternative fuel vehicle; BEV: battery electric vehicle; CVs: conventional vehicles; EVs: electric vehicles; FCV: fuel cell vehicle; HCM: hybrid choice model; HEV: hybrid electric vehicle (non plug-in); HOV: high occupancy vehicle; MNL: MultiNomial logit; MXL: MiXed logit model; PHEV: plug-in hybrid electric vehicle; RP: revealed preference; SP: stated preference.     

Consumer preferences for alternative fuel vehicles: A discrete choice analysis

This paper analyzes the potential demand for privately used alternative fuel vehicles using German stated preference discrete choice data. By applying a mixed logit model, we find that the most sensitive group for the adoption of alternative fuel vehicles embraces younger, well-educated, and environmentally aware car buyers, who have the possibility to plug-in their car at home, and undertake numerous urban trips. Moreover, many households are willing to pay considerable amounts for greater fuel economy and emission reduction, improved driving range and charging infrastructure, as well as for enjoying vehicle tax exemptions and free parking or bus lane access. The scenario results suggest that conventional vehicles will maintain their dominance in the market. Finally, an increase in the battery electric vehicles’ range to a level comparable with all other vehicles has the same impact as a multiple measures policy intervention package.     

Consumer preferences relative to the price and network capability of small urban vehicles

Preferences of consumers for small urban vehicle concepts differing only with respect to their hypothetical purchase prices and network capabilities (i.e., whether they are capable of operating on expressways, major arterials or local streets) are analyzed using statistical techniques based on psychological scaling theories. Results from these analyses indicate that a vast majority of consumers are not readily willing to give up the accessibility provided by conventional automobiles. More specifically, over the range of hypothetical prices considered here, network capability dominates as a determinant of preferences for vehicle concepts. Also, the ability to operate vehicles on expressways is of utmost importance to consumers.     

Consumer preferences and willingness to pay for advanced vehicle technology options and fuel types

The automotive industry is witnessing a revolution with the advent of advanced vehicular technologies, smart vehicle options, and fuel alternatives. However, there is very limited research on consumer preferences for such advanced vehicular technologies. The deployment and penetration of advanced vehicular technologies in the marketplace, and planning for possible market adoption scenarios, calls for the collection and analysis of consumer preference data related to these emerging technologies. This study aims to address this need, offering a detailed analysis of consumer preference for alternative fuel types and technology options using data collected in stated choice experiments conducted on a sample of consumers from six metropolitan cities in South Korea. The results indicate that there is considerable heterogeneity in consumer preferences for various smart technology options such as wireless internet, vehicle connectivity, and voice command features, but relatively less heterogeneity in the preference for smart vehicle applications such as real-time traveler information on parking and traffic conditions.     

An empirical investigation of the impact of behavioural and psychographic consumer characteristics on car preferences: An integrated model of car type choice

Based on the data collected from a large-scale survey research of 1622 consumers, the present paper develops a disaggregate, compensatory choice model to collectively examine the impact of under-examined factors on consumer car type choice behaviour. All existing econometric forecasting models of vehicle type choice in the literature have so far considered objective measures as determinants of vehicle type choice. The proposed choice model considers 12 car-type alternatives and is successively extended to allow for choice probability distortions resulting from individual heterogeneity across a set of 30 variables, related to objective, behavioural and psychographic consumer characteristics. The results provide clear evidence that variables such as purpose of car use, prepurchase information source used, consumer’s proneness towards buying an ecological car, consumer’s involvement with cars, and consumer’s attachment to cars, significantly affect car type choice. The results yield important implications for manufacturers, transportation planners and researchers.     

Consumer preferences for battery electric vehicles: A choice experimental survey in China

To accelerate the diffusion of battery electric vehicles (BEVs), consumer preferences for different products and policy attributes must be determined. Although previous studies have investigated consumer preferences for some product attributes, including purchase price, operation cost, driving range, and charging time, limited studies have discussed the broader aspects of product attributes, such as battery warranty and depreciation rate. Moreover, market-oriented incentives, including the personal carbon trading (PCT) scheme and the tradable driving credits (TDC) scheme, can theoretically be effective alternatives to expensive purchase subsidies. However, there is a lack of empirical evidence that confirms the influence of these two schemes on BEV adoption. To fill these gaps, we conducted a stated preference choice experimental survey in China and investigated the effect of product attributes, existing policy incentives, and two emerging market-oriented incentives on BEV adoption. Our results reveal that along with the main product attributes, battery warranty has a significant positive effect on inducing mainstream consumers to adopt BEVs while no preference difference occurs among existing policy incentives after purchase subsidies are abolished. For young consumers, almost all incentives that reduce the operation cost (e.g., PCT) or increase convenience (e.g., TDC) can increase their adoption of BEVs. These findings can provide important implications for the government with regard to designing novel incentives and promoting BEV adoption.     

A choice experiment on alternative fuel vehicle preferences of private car owners in the Netherlands

This paper presents results of an online stated choice experiment on preferences of Dutch private car owners for alternative fuel vehicles (AFVs) and their characteristics. Results show that negative preferences for alternative fuel vehicles are large, especially for the electric and fuel cell car, mostly as a result of their limited driving range and considerable refueling times. Preference for AFVs increases considerably with improvements on driving range, refueling time and fuel availability. Negative AFV preferences remain, however, also with substantial improvements in AFV characteristics; the remaining willingness to accept is on average € 10,000–€ 20,000 per AFV. Results from a mixed logit model show that consumer preferences for AFVs and AFV characteristics are heterogeneous to a large extent, in particular for the electric car, additional detour time and fuel time for the electric and fuel cell car. An interaction model reveals that annual mileage is by far the most important factor that determines heterogeneity in preferences for the electric and fuel cell car. When annual mileage increases, the preference for electric and fuel cell cars decreases substantially, whilst the willingness to pay for driving range increases substantially. Other variables such as using the car for holidays abroad and the daily commute also appear to be relevant for car choice.     

Travelers' preferences for in-vehicle information systems: An exploratory analysis

A sample of travelers' preferences toward in-vehicle traffic information systems was undertaken and appropriate statistical models were estimated. Specifically, ordered logit and regression analyses were conducted to quantify travelers' ratings of the importance of in-vehicle system attributes, and the distance ahead that they prefer to be notified of various types of information provided by in-vehicle systems. Model estimation results show that travelers' socio-economics, habitual travel patterns, commute congestion levels and attitudes toward in-vehicle technologies are significant determinants of travelers' importance ratings and the preferred distance ahead of in-vehicle system information. These model results provide important information for both marketing and design of in-vehicle information systems.     

Consumer preferences for electric vehicles in lower tier cities of China: Evidences from south Jiangsu region

China is the world biggest market of electric vehicles (EVs) in terms of production and sales. Existing studies on consumer preferences for EVs in China have generally focused on first-tier cities, while little attention has been paid to the lower tier cities. This exploratory study investigates consumer preferences for EVs in lower tier cities of China, by collecting stated preference (SP) data in two second-tier cities and three third-tier cities in the south Jiangsu region of China. The discrete choice modeling analysis shows that Chinese consumers in lower-tier cities are generally sensitive to monetary attributes, charging service and driving range of EVs. They also perceive Chinese vehicle brands to be disadvantaged compared with European brands. When comparing the differences in second-tier versus third-tier cities, we find that consumers in third-tier cities are more sensitive to purchase price, subsidy of purchase, and coverage of charging stations than their second-tier counterparts. This study also highlights the role of different psychological effects, such as symbols of car ownership, normative-face influence, and risk aversion, in shaping consumer preferences for EVs in lower-tier cities of China. Our results provide important implications for contextualizing government policies and marketing strategies in line with the different sizes and characteristics of the cities in China.     

Real-time parking information management to reduce search time,vehicle displacement and emissions

The time spent searching for free parking spaces can produce considerable environmental pollution. Information on parking availability can be a powerful instrument for reducing these search costs. This paper develops a demand assignment model to evaluate the benefits of manipulating information with the objective of reducing the time and distances involved in finding a parking-place; including the walking distances involved. Using the full search procedure it was found that improvements of some 10% in efficiency could be achieved, but only at high computational costs. A genetic algorithm was programmed that increases the possibility of finding the optimum information conditions that can be translated into lower emissions of toxic greenhouse gases.     

Consumer valuation of new car attributes: An econometric analysis of the demand for domestic and Japanese/Western European imports

Although previous studies of new vehicle choice decisions have shown that consumers evaluate the attributes of domestic vehicles differently from those of imported vehicles, the assumption underlying these results is overly restrictive. In particular, there is no reason to assume, a priori, that the attributes of all imported vehicles have similar effects upon consumer choice behavior. A competing hypothesis, for example, is that consumers of U.S. and European automobiles have similar attribute valuations that are differentiated from those of Japanese consumers. In the present paper, a multinomial logit model of vehicle type choice is developed which more completely differentiates imports by country of origin. Using a 1985 national sample of new car buyers to estimate the model, willingness to pay measures were calculated and nested hypothesis tests on attribute valuation performed. The results supported the hypothesis that consumers value vehicle attributes differently depending upon its country of origin. Moreover, consumers do not have similar valuations on the attributes of all imports implying that an arbitrary distinction between domestic and imported vehicles may produce misleading results.     

Explaining public transport information use when a car is available: attitude theory empirically investigated

Despite recent investments in and growing availability of various public transport information services, levels of apparent non-use (of particular information services) across the population remain high. Policymakers and information service providers could benefit from a better understanding of factors affecting information use. The goal of this paper is to provide more insight into the (non-)use of public transport information by applying attitude theory. A postal survey was sent to a random sample of 10,000 households in Bristol and Manchester, UK. The response rate was 13%. Respondents were questioned about an uncertain journey they were going to make. Structural equation modelling has been used to investigate interdependencies among the factors studied. The results show that the desire to consult public transport information for an uncertain journey is affected by attitudes, subjective norms, and past behaviour. These social-psychological factors are in turn affected by constraints such as travel behaviour and trip context. Crucially in terms of addressing issues of non-use of information it is found that consulting information is influenced by propensity to consider using public transport rather than vice versa as has hitherto been implicitly assumed by many involved in the provision of transport and information services.     

New car preferences move away from greater size,weight and power: Impact of Dutch consumer choices on average CO2-emissions

This paper assesses the separate effects of consumer preferences and technological advances on sales-weighted average CO₂ emissions of new passenger cars in the Netherlands. Since 2008, consumer preferences have been moving away from large size, weight and power whereby car buyers were offsetting more than 50% of the potential CO₂ reduction from technological advances. From 2008 to 2011 consumer choices not only ceased to offset a large share of the technological advances, but contributed more than an additional 30% to CO₂ reductions. Had consumer preferences not decoupled from the historical upward trend, the Dutch sales-weighted average CO₂ emissions of new passenger cars would have been 139 g/km rather than the 126 grams CO₂ per km in 2011.     

Changes in private car ownership associated with car sharing: gauging differences by residential location and car share typology

Transportation - While a large body of literature shows that car share encourages low car ownership, the evidence is rather limited in the context of different types of car share (fleet-based...     

Positive and negative spillover effects from electric car purchase to car use

This study reports the results of two online surveys conducted on buyers of conventional combustion engine cars compared to those of electric vehicles in Norway. The results show that electric cars are generally purchased as additional cars, do not contribute to a decrease in annual mileage if the old car is not substituted, and that electric car buyers use the car more often for their everyday mobility. Psychological determinants derived from the theory of planned behavior and the norm-activation theory show a high correlation between the purchase and use stages. Electric car buyers, have lower scores on many determinants of car use, especially awareness of consequences and close determinants of car use.     

Patterns of car usage and restraint modelling

Transport demand forecasting procedures have traditionally employed household based modal split models implicitly assuming a selection of mode for each trip based on relative generalised cost. A detailed examination of the trip patterns of a sample of household in West Yorkshire shows that in fact there is little discretionary choice of public transport; public transport trips in car owning households generally being explained in terms of the specific unavailability of the car for such trips. Two versions of a category analysis model for modal split are based on this observation and applied to household data for Glamorgan and Monmouthshire to show that such a procedure is workable and produces results comparing favourably with traditional approaches. The likely implications of three types of restraint policy are examined and it is concluded that the existing interdependence in trip patterns and modal choice within the household is of great significance in determining their effects. In particular it appears that positive attempts to increase vehicle occupancy at the peak are likely to be more favourable to public transport finances than the more negative policies to restrain use of the car for journey to work, or second car ownership.     

Characterising and predicting car ownership using rough sets

This paper applies the relatively new knowledge discovery technique of Rough set analysis to identify the factors that influence the level of car ownership in a household. The study uses the detailed Great Britain National Travel Survey data set which contains information on both household and individual travel behaviour. The knowledge extraction is done using the theory of Rough sets and is presented in the form of easily understood if-then statements or rules which reveal how each attribute influences car ownership behaviour. These rules can then be used to predict household car ownership from information held about previously unseen households and the classification performance of the rules can be assessed. The performance of this classification task is shown to be on a par with other reported studies in this area.     

Carsharing: the impact of system characteristics on its potential to replace private car trips and reduce car ownership

Transportation - This paper aims to explore the potential of carsharing in replacing private car trips and reducing car ownership and how this is affected by its attributes. To that affect, a...     

The use of space availability information in “PARC” systems to reduce search times in parking facilities

Two different ways to manage availability information in parking facilities were evaluated in this article. First, in level 4 PARC systems (Parking Access and Revenue Control), when occupancy percentages for all garage levels are above 90% and 95%, the information on variable message sign (VMS) panel will indicate that there are no free spaces – censoring information. In this article, zoning is understood as the second information management tool; it consists of placing vehicle detection systems at intermediary points around the facility in such a way as to separate it into internal zones. It is a variation applicable to facilities with level 2 PARC systems, such as those in shopping centres, where a modification of the vehicle counting algorithm in the main program of the PARC system allows the determination of the number of free spaces in specific zones within the parking facility. According to the simulations that were carried out after testing an existing choice model, level 4 PARC systems are sufficiently effective in small facilities; the option of preparing “false” information when 5 or 10 free spaces are left on a garage level in order to influence user decisions has few practical repercussions. However, the separation into internal zones proposed for level 2 PARC systems shows a 16.2% reduction in search time.     

A causal analysis of car ownership and transit use

The causal structure underlying household mobility is examined in this study using a sample obtained from the Dutch National Mobility Panel survey. The results indicate that car ownership is strongly associated with mode use, but that it has no influence on weekly person trip generation by household members. Characteristics of mode use are examined through a causal analysis of changes in car ownership, number of drivers, number of car trips, and number of transit trips. It is shown that observed changes in mode use cannot be adequately explained by assuming that a change in transit use influences car use. The finding suggests that the increase in car use, which is a consequence of increasing car ownership, may not be suppressed by improving public transit.