Exploring the determinants of consumers’ WTB and WTP for electric motorcycles using CVM method in Macau

Abstract

As an important part of alternative fuel vehicles, electric vehicles are attracting more and more attentions worldwide. This study is designed to identify the key influencing factors of consumers’ willingness to buy (WTB) and willingness to pay (WTP) for electric motorcycle (EM) based on questionnaire survey. The results show that the respondents have relatively less understanding of the EM. When purchasing the EM, the respondents often pay more attentions to the EM's actual cost (sale price, charging fee, repair fee, and tax incentives, etc.), while the driving speed and load capacity of EM attract very little attention. The respondents' knowledge of EM as well as their education level and income level will promote the WTB and WTP behaviors significantly. While, their consideration on charging fee and family members present a negative influence on WTB and WTP. Using the contingent valuation method (CVM), it is estimated that the mean WTP value for EM is 1315.54 Macau Pataca (MOP), far lower than the current market price gap of 8000 MOP between EM and ordinary fuel motorcycle. The obtained results will help policy makers to understand consumer's purchase behavior of EM, and can provide some effective supports for EM development in Macau.