Which consumer attributes will act crucial roles for the fast market adoption of electric vehicles?: Estimation on the asymmetrical & heterogeneous consumer preferences on the EVs

Abstract

Electric vehicles are currently gaining more attention in terms of mitigating the causes of climate change. Therefore, automakers as well as many governments have fostered EV adoption by policy incentives and new R&D strategies. However, the EV adoption rate remains low despite those efforts due to their relatively high prices, technical limitations, and low charging infrastructure availability compared to internal combustion engine vehicles. In this study, we analyzed consumer preferences on the attributes of EVs and conventional ICEVs. For the data collection, we conducted 350 face-to-face discrete choice surveys of residents of metropolitan areas in Korea, administered by Gallup Korea utilizing conjoint surveys. We utilized a mixed logit model and estimated the consumer preferences of EV attributes, including incorporating reference points to verify the prospect theory empirically. We also conducted market share simulations by differentiating the attribute levels considering the RP dependence to predict future EV market shares. The model found that fuel economy, purchase price, distance to charging station, driving range, charging time, and autonomous driving were all statistically significant. Additionally, we confirmed that the respondents had an asymmetrical preference for the purchase price in EV adoption by considering their previous vehicle purchase experience as an RP.