Where will go for electric vehicles in China after the government subsidy incentives are abolished? A controversial consumer perspective

Abstract

The environmental benefits of Electric Vehicles (EVs) vary greatly depending on the local power structure. A realistic question is, after the Chinese government completely abolished subsidies for EVs in 2022, whether consumers are willing to take over from the government and pay extra for the perceived green attributes of EVs? The scant literature barely provided valued information. We, explore whether consumers consider EVs as a green product based on micro-survey data. Following that, we investigate the influencing factors behind the willingness of consumers to pay for the green attributes of EVs in a scenario where subsidies are completely abolished. Based on a large sample (2454), the results show a reasonable but disappointing conclusion that consumers' perception of EV's green attributes is weak and vague, and only significant when consumers' awareness evolves from an attitude and social norm to a social responsibility. The burden of government subsidies for EVs cannot be transferred to consumers under the background of subsidies is completely abolished. We conclude by urging the government to formulate effective regulatory measures for vehicle manufacturers to further reduce the cost of electric vehicles, and publicize the EVs' indirect environmental benefits from a long-term future perspective.