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Who is afraid of electric vehicles? An analysis of stated EV preferences in Switzerland

Author

Listed:
  • Jeremy van Dijk
  • Mehdi Farsi
Abstract
We analyse the relative effect of potential barriers for the adoption of electric vehicles (EVs). While focusing on key factors such as purchase price, battery range, and driving costs, we investigate the heterogeneity of their effects across various groups of consumers and determine those most resistant to the new technology. To this end we develop a choice experiment conducted among 882 respondents across Switzerland. The stated-preference approach allows us to go beyond early adopters to the broader population of car owners, but also individuals potentially interested in buying a car in the near future. Our findings indicate relatively low demand elasticity with respect to purchase price, and statistically insignificant elasticity with respect to battery range and driving cost. Car ownership and habitual transport choices, as well as environmental preferences, are significant determinants of the selected technology. While respondents who do not own a car are more likely to choose an EV, regular car users present a strong resistance to the new technology. Overall, the results suggest that marginal promotion policies are unlikely to have a large impact on EV adoption.

Suggested Citation

  • Jeremy van Dijk & Mehdi Farsi, 2022. "Who is afraid of electric vehicles? An analysis of stated EV preferences in Switzerland," IRENE Working Papers 22-04, IRENE Institute of Economic Research.
    • Handle: RePEc:irn:wpaper:22-04
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Transport; Electric vehicles; Adoption barriers; Choice experiment; Stated preferences; Environmental policy; Behaviour;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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