Abstract:
Recently, gasoline vehicles are more frequently being replaced by hybrid electric vehicles (HEVs) and electric vehicles (EVs). For private companies interested in selling HEVs and EVs, it is crucial to understand why people purchase HEVs and EVs rather than gasoline vehicles in order to promote those sells effectively. Additionally, replacing gasoline vehicles with HEVs and EVs leads the automobile industry and its customers to take responsibility to reduce carbon dioxide emission. The purpose of this study is to comprehend the factors affecting decisions to purchase HEVs and EVs.
A survey instrument on factors determining individual vehicle purchase decisions was developed and refined through a focus group, an expert review, and a pre-testing. Using the completed instrument, an intercept survey was conducted at Durham (NC) farmers’ market and the religious meeting.
The result indicated that willingness to pay (WTP) for HEVs and EVs is statistically higher than WTP for gasoline vehicles. WTP for HEVs and EVs is positively related to number of children, number of household vehicles and average annual driving distance, while it is negatively related to an individual’s stated level of importance for fuel-efficiency.
