Are residents more willing to buy and pay for electric vehicles under the “carbon neutrality”?

Abstract

The transportation sector will be critical to the successful pursuit of the carbon neutrality goal in China. Electric vehicles (EVs) have seemed to be an important solution, for reducing carbon emissions, and residents’ support will be essential to achieve the extensive use of EVs. Thus, this study aimed to explore Macao residents’ willingness to buy (WTB) and pay for (WTP) EVs through 406 questionnaires, and to determine the influencing factors. The results showed that convenience, actual cost and environmental benefits are the consideration factors for residents to purchase EVs. It was found that 90.14% of respondents were willing to buy an EV. For WTP, however, the proportion fell to 56.71%. The environmental benefits, battery range, charging convenience and safety of EVs, and consumer income are all positively correlated with respondents’ WTB. For their WTP, potential pollution from fuel vehicles, driving frequency and environmental benefits of EVs were more important. Using the contingent valuation method (CVM), it was estimated that respondents’ WTP value is about 15041.10 MOP (much lower than market value gap: 50000 MOP). In summary, the existing policies in Macao are insufficient to guide and improve the residents’ WTB and WTP. In the future, the government should strengthen publicity, especially to young consumers, and give EV owners some privileges, to stimulate residents’ WTB and WTP. In addition, in the context of carbon neutrality, more attention should be paid to cleaner power generation in Macao.

Keywords

• Electric vehicle
• Contingent valuation method
• Willingness to buy (WTB)
• Willingness to pay (WTP)
• Determinants
• Macao