What determines consumers' acceptance of electric vehicles: A survey in Shanghai, China

Abstract

In China, although the number of registered electric vehicles (EVs) has recently risen, the market share of EVs is not comparable to that of conventional internal combustion engine vehicles (ICEVs). To identify the determinants of EV acceptance, this study performs a questionnaire survey in Shanghai, the economic center of China and one of the earliest pilot cities for promoting EVs, using the structural equation model (SEM) to investigate the influences of five external factors and eight demographic characteristics on consumers' EV purchases. In particular, we examine the peer effect of consumers to explore the impact of consumer interaction on EV diffusion. Although rarely considered in previous studies, peer effects have a significant impact on the diffusion of new products. In addition, we conduct a heterogeneity analysis between consumers who have bought EVs and those who have not. The results demonstrate that the main buyer of EVs in Shanghai is younger, mainly between 31 and 40 years old. Consumers with high income, high education and living in the city center are more willing to choose EVs, while families with large family members prefer not to buy EVs. Consumers who have not bought EVs are more concerned about EV performance. Consumers who have already purchased EVs pay more attention to the availability of charging facilities and government policies related to EVs, especially the free license plate policy in Shanghai. Particularly, peer effects play a significant role in consumers' EV purchase decisions of the two types of consumers, which proves that the information exchange between peers has a great influence on their purchase decisions. This study provides evidence for the catalytic role of peer effects in consumers' purchasing of EVs. The outcomes of this paper provide evidence for governments and enterprises on the importance of the role of peer effects and consumer heterogeneity in EV diffusion.