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Perceived Advantage in Perspective Application of Integrated Choice and Latent Variable Model to Capture Electric Vehicles Perceived Advantage from Consumers Perspective

Relative advantage, or the degree to which a new technology is perceived to be better over the existing technology it supersedes, has a significant impact on individuals decision of adopting to the new technology. This paper investigates the impact of electric vehicles perceived advantage over the conventional internal combustion engine vehicles, from consumers perspective, on their decision to select electric vehicles. Data is obtained from a stated preference survey from 1176 residents in New South Wales, Australia. The collected data is used to estimate an integrated choice and latent variable model of electric vehicle choice, which incorporates the perceived advantage of electric vehicles in the form of latent variables in the utility function. The design of the electric vehicle, impact on the environment, and safety are three identified advantages from consumers point of view. The model is used to simulate the effectiveness of various policies to promote electric vehicles on different cohorts. Rebate on the purchase price is found to be the most effective strategy to promote electric vehicles adoption.

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