A study of the willingness of Spanish drivers to pay a premium for ZEVs. (February 2021)

• Record Type: Journal Article
• Authors: Rosales-Tristancho, Abel; Carazo, Ana F.; Brey, Raúl
• Is Part Of: Energy policy. Volume 149(2021)
• Publication Date: 2021-02
• Subjects: Zero emission vehicles -- Willingness to pay -- Finite mixture models -- Purchase price; Energy policy -- Periodicals; Politique énergétique -- Périodiques; Electronic journals; 333.79
• DOI: 10.1016/j.enpol.2020.112091
• Languages: English
• ISSNs: 0301-4215

Abstract

Abstract: Over the next few decades the Spanish government aims to increase the, so far, insignificant market share of zero emission vehicles (ZEVs) in the Spanish vehicle fleet. However, there are several barriers that hamper this market penetration, one of the most important being the higher purchase prices of zero emission cars compared to their conventional counterparts. This paper presents the results of a survey of drivers (n = 1474) conducted in Spain towards year-end 2017 to assess their willingness to purchase ZEVs. The willingness to pay responses were analyzed using finite mixture models to identify the different underlying profiles in the sample. Purchase prices emerge as a major obstacle for most of the sample. The results reveal the existence of different subpopulations with different profiles and willingness to pay. Earlier adopters are those with a higher level of education, higher income level, more extensive knowledge of ZEVs, and greater awareness of the negative consequences of the use of fossil fuels in transportation in terms of environmental pollution and economic dependence. These results justify the importance of public education campaigns in Spain on the characteristics and advantages of ZEVs compared to conventional cars. Highlights: We study willingness to pay (WTP) for zero emission vehicles (ZEVs) in Spain. Willingness to pay (WTP) responses were analyzed using finite mixture models. Purchase prices emerge as a major obstacle for most of the sample. The results reveal the existence of subpopulations with different profiles and WTP. The results justify the importance of public education campaigns in Spain on ZEVs.