Consumer attitudes about electric cars: Pricing analysis and policy implications |
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| Institution: | 1. CN Professor of SCM, University of Manitoba, 484 Drake Centre, Winnipeg, Manitoba R3T 5V4, Canada;2. Via < = > Fara Transportation Policy and Planning, Winnipeg, Manitoba, Canada;3. Centre for Emerging Renewable Energy Inc. (CERE), Canada;4. Elias Consulting, Victoria, British Columbia, Canada;1. Statistics Norway, Akersveien 26, 0177 Oslo, Norway;2. Economic Department, Norwegian University of Science and Technology, N-7491 Trondheim, Norway;1. Eindhoven University of Technology, Department of Urban Science and Systems, Urban Planning Group, PO Box 513, Vertigo 8.19, 5600MB Eindhoven, The Netherlands;2. Eindhoven University of Technology, Department of Urban Science and Systems, Urban Planning Group, PO Box 513, Vertigo 8.25, 5600MB Eindhoven, The Netherlands;3. Eindhoven University of Technology, Department of Urban Science and Systems, Urban Planning Group, PO Box 513, Vertigo 8.18, 5600MB Eindhoven, The Netherlands;1. Technische Universität Chemnitz, 09107 Chemnitz, Germany;2. Ulm University, 89081 Ulm, Germany |
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| Abstract: | As electric vehicles (EVs) become more readily available, sales will depend on consumers’ interest and understanding. A survey of consumer attitudes on electric cars was conducted in Manitoba from late 2011 to early 2012. It utilizes two price assessment methods. The van Westendorp price sensitivity method (PSM) shows the acceptable price range for EVs to be $22,000–27,500. This range closely matches average price range for sales of conventional cars during the same period. The willingness-to-pay method reveals consumers are unwilling to pay large premiums for EVs, even when given information on future fuel savings. A consumer group with experience or exposure to EVs is somewhat different. Nearly 25% of these people are willing to pay a premium of up to $10,000. Different interpretations can be drawn from these responses, calling for further research. An apparent policy opportunity involves consumer education to enhance knowledge and facilitate EV purchase decisions. Survey results also support the hypothesis that EV rollout has focused too much on technology, and not enough on consumers. |
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| Keywords: | Electric vehicles Consumer perceptions Pricing Public policy |
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