Adoption of electric vehicles by young adults in an emerging market: a case study from Argentina

Abstract

ABSTRACT The destiny of the electric vehicle (EV) marketplace will depend upon the behaviour of potential buyers and on how emerging markets allow EVs to be perceived as a mobility solution to the externalities generated by internal combustion (IC) vehicles. To this end it is important to ascertain the role played by psychological factors, along with instrumental attributes, especially among younger adults (future purchasers) in not yet mature markets. Our paper analyses and models the propensity to purchase an EV with respect to an equivalent IC vehicle. It contributes to the existing literature investigating younger adults’ behaviour in an emerging market, focusing on the role of attitudes and perceptions. A stated preferences survey, built on real commercial scenarios (Renault ZOE vs Renault Clio), was designed and disseminated at the University of Cordoba (Argentina). Respondent behaviour was modelled within the random utility paradigm. First, heterogeneity among users was investigated through mixed multinomial logit formulation; The role of psycho-attitudinal factors was then explored through the specification of hybrid choice models with latent variables. Estimation results indicate the significant role of attitudes and perceptions in emerging markets.