A cross-sectional study of factors influencing purchasing cars in European Union – does the electric and hybrid cars change the contemporary business approach?
Abstract
This study aims to examine the expansion of the electric vehicle fleet in the context of transport electrification in the European Union. We assessed the car market, following demand and sales trends for electric and hybrid cars. It was explored the possibility of a causal relationship among the percentage of BEV + PHEV in the total fleet and purchasing power, loading infrastructure, government support, the level of education and the degree of digitalization. To achieve the main objectives of the research to assess the existence and magnitude of the causal effects of the considered variables on the percentage of BEV + PHEV in the total fleet, we conducted a cross-sectional analysis in 2020 among the European Union (EU) countries. Five research hypotheses were formulated and tested. The results confirmed that the economic and social development of a region, the charging infrastructure, the government support measures, and the degree of digitalization positively influence the desire of the EU population to buy electric cars.
Keyword : digitalization, environment, battery electric vehicles, plug-in hybrid electric vehicles, sustainability, consumer attitudes
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Adhikari, M., Ghimire, L. P., Kim, Y., Aryal, P., & Khadka, S. B. (2020). Identification and analysis of barriers against electric vehicle use. Sustainability, 12(12), Article 4850. https://doi.org/10.3390/su12124850
Agarwal, P., & Alam, M. A. (2018, May). Use of ICT for sustainable transportation. IOP Conference Series: Earth and Environmental Science, 150(1), Article 012032. https://doi.org/10.1088/1755-1315/150/1/012032
Aijaz, I., & Ahmad, A. (2022). Electric vehicles for environmental sustainability. Smart Technologies for Energy and Environmental Sustainability (pp. 131–145). Springer. https://doi.org/10.1007/978-3-030-80702-3_8
Anthony Jnr, B. (2021). Integrating electric vehicles to achieve sustainable energy as a service business model in smart cities. Frontiers in Sustainable Cities, 3, Article 685716. https://doi.org/10.3389/frsc.2021.685716
Arat, H. T., Baltacioğlu, M. K., & Conker, C. (2022). Electric vehicles and future of transport sector. In Handbook of energy transitions (pp. 151–165). CRC Press. https://doi.org/10.1201/9781003315353-10
Ayadi, M., Naifar, O., & Derbel, N. (2019). High-order sliding mode control for variable speed PMSG-wind turbine-based disturbance observer. International Journal of Modelling, Identification and Control, 32(1), 85–92. https://doi.org/10.1504/IJMIC.2019.101958
Azim Mohseni, N., Bayati, N., & Ebel, T. (2024). Energy management strategies of hybrid electric vehicles: A comparative review. IET Smart Grid, 7(3), 191–220. https://doi.org/10.1049/stg2.12133
Balestra, L., & Schjølberg, I. (2021). Modelling and simulation of a zero-emission hybrid power plant for a domestic ferry. International Journal of Hydrogen Energy, 46(18), 10924–10938. https://doi.org/10.1016/j.ijhydene.2020.12.187
Bjerkan, K. Y., Nørbech, T. E., & Nordtømme, M. E. (2016). Incentives for promoting battery electric vehicle (BEV) adoption in Norway. Transportation Research Part D: Transport and Environment, 43, 169–180. https://doi.org/10.1016/j.trd.2015.12.002
Buhmann, K. M., & Criado, J. R. (2023). Consumers’ preferences for electric vehicles: The role of status and reputation. Transportation Research Part D: Transport and Environment, 114, Article 103530. https://doi.org/10.1016/j.trd.2022.103530
Bunsen, T., Cazzola, P., Gorner, M., Paoli, L., Scheffer, S., Schuitmaker, R., Tattini, J., & Teter, J. (2018). Global EV Outlook 2018: Towards cross-modal electrification. International Energy Agency. Retrieved February 5, 2023, from https://orbit.dtu.dk/en/publications/
Choi, W., Yoo, E., Seol, E., Kim, M., & Song, H. H. (2020). Greenhouse gas emissions of conventional and alternative vehicles: Predictions based on energy policy analysis in South Korea. Applied Energy, 265, Article 114754. https://doi.org/10.1016/j.apenergy.2020.114754
Christidis, P., & Focas, C. (2019). Factors affecting the uptake of hybrid and electric vehicles in the European Union. Energies, 12(18), Article 3414. https://doi.org/10.3390/en12183414
Crabtree, G. (2019). The coming electric vehicle transformation. Science, 366(6464), 422–424. https://doi.org/10.1126/science.aax0704
Di Felice, L. J., Renner, A., & Giampietro, M. (2021). Why should the EU implement electric vehicles? Viewing the relationship between evidence and dominant policy solutions through the lens of complexity. Environmental Science & Policy, 123, 1–10. https://doi.org/10.1016/j.envsci.2021.05.002
Dominković, D. F., Bačeković, I., Pedersen, A. S., & Krajačić, G. (2018). The future of transportation in sustainable energy systems: Opportunities and barriers in a clean energy transition. Renewable and Sustainable Energy Reviews, 82, 1823–1838. https://doi.org/10.1016/j.rser.2017.06.117
Dutta, B., & Hwang, H. G. (2021). Consumers purchase intentions of green electric vehicles: The influence of consumers technological and environmental considerations. Sustainability, 13(21), Article 12025. https://doi.org/10.3390/su132112025
Ekman, P., Röndell, J., & Yang, Y. (2019). Exploring smart cities and market transformations from a service-dominant logic perspective. Sustainable Cities and Society, 51, Article 101731. https://doi.org/10.1016/j.scs.2019.101731
European Comission. (2020, December 9). Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. Sustainable and Smart Mobility Strategy – putting European transport on track for the future (COM/2020/789 final). Retrieved October 15, 2021, from https://eur-lex.europa.eu/legal-content/RO/TXT/?uri=CELEX:52020DC0789
European Investment Bank. (2022). The EIB climate survey. Citizens call for green recovery.
Febransyah, A. (2021). Predicting purchase intention towards battery electric vehicles: A case of Indonesian market. World Electric Vehicle Journal, 12(4), Article 240. https://doi.org/10.3390/wevj12040240
Field, A., Miles, J., & Field, Z. (2012). Discovering statistics using R. Sage Publications.
Gómez Vilchez, J. J., & Thiel, C. (2020). Simulating the battery price and the car-mix in key electro-mobility markets via model coupling. Journal of Simulation, 14(4), 242–259. https://doi.org/10.1080/17477778.2020.1781556
Hackbarth, A., & Madlener, R. (2016). Willingness-to-pay for alternative fuel vehicle characteristics: A stated choice study for Germany. Transportation Research Part A: Policy and Practice, 85, 89–111. https://doi.org/10.1016/j.tra.2015.12.005
Hair, J., Black, W., Babin, B., & Anderson, R. (2010). Multivariate data analysis: A global perspective (7 ed.). Pearson Education Inc.
Hamilton, J., Walton, B., Ringrow, J., Alberts, G., Fullerton-Smith, S., & Day, E. (2020). Electric vehicles: Setting a course for 2030. Deloitte Insights. Retrieved October 24, 2021, from https://www2.deloitte.com/uk/en/insights/focus/future-of-mobility/electric-vehicle-trends-2030.html
Harris, A., Soban, D., Smyth, B. M., & Best, R. (2020). A probabilistic fleet analysis for energy consumption, life cycle cost and greenhouse gas emissions modelling of bus technologies. Applied Energy, 261, Article 114422. https://doi.org/10.1016/j.apenergy.2019.114422
Heal, G. (2022). Economic aspects of the energy transition. Environmental and Resource Economics, 83(1), 5–21. https://doi.org/10.1007/s10640-022-00647-4
Heffner, R. R., Kurani, K. S., & Turrentine, T. S. (2007). Symbolism in California’s early market for hybrid electric vehicles. Transportation Research Part D: Transport and Environment, 12(6), 396–413. https://doi.org/10.1016/j.trd.2007.04.003
Hess, S., Fowler, M., Adler, T., & Bahreinian, A. (2012). A joint model for vehicle type and fuel type choice: Evidence from a cross-nested logit study. Transportation, 39(3), 593–625. https://doi.org/10.1007/s11116-011-9366-5
Hossain, M. S., Kumar, L., El Haj Assad, M., & Alayi, R. (2022). Advancements and future prospects of electric vehicle technologies: A comprehensive review. Complexity. https://doi.org/10.1155/2022/3304796
Huang, X., & Ge, J. (2019). Electric vehicle development in Beijing: An analysis of consumer purchase intention. Journal of Cleaner Production, 216, 361–372. https://doi.org/10.1016/j.jclepro.2019.01.231
Ivașcu, L., Ianăși, M., Lazăr, L., & Lemnaru, L. (2020). Impactul automobilelor electrice asupra dezvoltării sustenabile. Review of Management & Economic Engineering, 19(1), 83–97.
Jansson, J., Pettersson, T., Mannberg, A., Brännlund, R., & Lindgren, U. (2017). Adoption of alternative fuel vehicles: Influence from neighbors, family and coworkers. Transportation Research Part D: Transport and Environment, 54, 61–73. https://doi.org/10.1016/j.trd.2017.04.012
Koroma, M. S., Costa, D., Puricelli, S., & Messagie, M. (2023). Life Cycle Assessment of a novel functionally integrated e-axle compared with powertrains for electric and conventional passenger cars. Science of the Total Environment, 904, Article 166860. https://doi.org/10.1016/j.scitotenv.2023.166860
Liao, F., Molin, E., & van Wee, B. (2017). Consumer preferences for electric vehicles: A literature review. Transport Reviews, 37(3), 252–275. https://doi.org/10.1080/01441647.2016.1230794
Mandys, F. (2021). Electric vehicles and consumer choices. Renewable and Sustainable Energy Reviews, 142, Article 110874. https://doi.org/10.1016/j.rser.2021.110874
Mofolasayo, A. (2023). Assessing and managing the direct and indirect emissions from electric and fossil-powered vehicles. Sustainability, 15(2), Article 1138. https://doi.org/10.3390/su15021138
Mondejar, M. E., Avtar, R., Diaz, H. L., Dubey, R. K., Esteban, J., Gómez-Morales, A., .Hallam, G., Tresor Mbungu, N., Okolo, C. C., Prasad, K. A., She, Q., & Garcia-Segura, S. (2021). Digitalization to achieve sustainable development goals: Steps towards a Smart Green Planet. Science of the Total Environment, 794, Article 148539. https://doi.org/10.1016/j.scitotenv.2021.148539
Mukherjee, S. C., & Ryan, L. (2020). Factors influencing early battery electric vehicle adoption in Ireland. Renewable and Sustainable Energy Reviews, 118, Article 109504. https://doi.org/10.1016/j.rser.2019.109504
Mustafa, S., Zhang, W., & Li, R. (2021, December). Does environmental awareness play a role in EV adoption? A value-based adoption model analysis with SEM-ANN approach. In IEEE/WIC/ACM International Conference on Web Intelligence and Intelligent Agent Technology (pp. 433–440). https://doi.org/10.1145/3498851.3498992
Ninh, P., Bentzen, K., & Laugesen, M. S. (2014). Why should transportation companies join Public Private Partnership (PPP) proposed by the public sector to support the implementation process of Freight Electric Vehicles (FEVs) in Copenhagen Municipality (report). E-mobility NSR, Activity.
Olson, E. L. (2013). It’s not easy being green: The effects of attribute tradeoffs on green product preference and choice. Journal of the Academy of Marketing Science, 41, 171–184. https://doi.org/10.1007/s11747-012-0305-6
Ozaki, R. (2011). Adopting sustainable innovation: What makes consumers sign up to green electricity? Business Strategy and the Environment, 20(1), 1–17. https://doi.org/10.1002/bse.650
Pal, R., Chavhan, S., Gupta, D., Khanna, A., Padmanaban, S., Khan, B., & Rodrigues, J. (2021). A comprehensive review on IoT‐based infrastructure for smart grid applications. IET Renewable Power Generation,15(16), 3761–3776. https://doi.org/10.1049/rpg2.12272
Potoglou, D., & Kanaroglou, P. S. (2007). Household demand and willingness to pay for clean vehicles. Transportation Research Part D: Transport and Environment, 12(4), 264–274. https://doi.org/10.1016/j.trd.2007.03.001
Rahmani, D., & Loureiro, M. L. (2019). Assessing drivers’ preferences for hybrid electric vehicles (HEV) in Spain. Research in Transportation Economics, 73, 89–97. https://doi.org/10.1016/j.retrec.2018.10.006
Rehman, F. U., Islam, M. M., & Miao, Q. (2023). Environmental sustainability via green transportation: A case of the top 10 energy transition nations. Transport Policy, 137, 32–44. https://doi.org/10.1016/j.tranpol.2023.04.013
Shekhawat, M., & Bansal, H. O. (2023). An extensive review on hybrid electric vehicles powered by fuel cell-enabled hybrid energy storage system. Environmental Science and Pollution Research, 30(57), 119750–119771. https://doi.org/10.1007/s11356-023-30573-x
Sheth, J. N., Newman, B. I., & Gross, B. L. (1991). Why we buy what we buy: A theory of consumption values. Journal of Business Research, 22(2), 159–170. https://doi.org/10.1016/0148-2963(91)90050-8
Taylor, R. I. (2021). Energy efficiency, emissions, tribological challenges and fluid requirements of electrified passenger car vehicles. Lubricants, 9(7), Article 66. https://doi.org/10.3390/lubricants9070066
Tu, J., & Yang, C. (2019). Key factors influencing consumers’ purchase of electric vehicles. Sustainability, 11(4), Article 3863. https://doi.org/10.3390/su11143863
Turkdogan, S. (2021). Design and optimization of a solely renewable based hybrid energy system for residential electrical load and fuel cell electric vehicle. Engineering Science and Technology, an International Journal, 24(2), 397–404. https://doi.org/10.1016/j.jestch.2020.08.017
Turoń, K., Kubik, A., & Chen, F. (2022). What car for car-sharing? Conventional, electric, hybrid or hydrogen fleet? Analysis of the vehicle selection criteria for car-sharing systems. Energies, 15(12), Article 4344. https://doi.org/10.3390/en15124344
Valeri, E., & Danielis, R. (2015). Simulating the market penetration of cars with alternative fuel powertrain technologies in Italy. Transport Policy, 37, 44–56. https://doi.org/10.1016/j.tranpol.2014.10.003
Wang, X., Yan, Y., Li, B., Hao, X., Gao, N., & Chen, G. (2020). Prospect of solar-driven ejector-compression hybrid refrigeration system with low GWP refrigerants in summer of Guangzhou and Beijing. International Journal of Refrigeration, 117, 230–236. https://doi.org/10.1016/j.ijrefrig.2020.04.035
White, A. (2022). 12 best-selling electric vehicles of 2021. Retrieved February 20, 2023, from https://www.caranddriver.com/features/g36278968/best-selling-evs-of-2021/
Whitehead, J., Washington, S. P., & Franklin, J. P. (2019). The impact of different incentive policies on hybrid electric vehicle demand and price: An international comparison. World Electric Vehicle Journal, 10(2), Article 20. https://doi.org/10.3390/wevj10020020
Xue, C., Zhou, H., Wu, Q., Wu, X., & Xu, X. (2021). Impact of incentive policies and other socio-economic factors on electric vehicle market share: A panel data analysis from the 20 countries. Sustainability, 13(5), Article 2928. https://doi.org/10.3390/su13052928
Zhang, H., Irfan, M., Ai, F., Al-Aiban, K. M., & Abbas, S. (2024). Analyzing barriers to the adoption and development of electric vehicles: A roadmap towards sustainable urban transportation system in China. Renewable Energy, 233, Article 121136. https://doi.org/10.1016/j.renene.2024.121136
Zhang, Y., Yu, Y., & Zou, B. (2011). Analyzing public awareness and acceptance of alternative fuel vehicles in China: The case of EV. Energy Policy, 39(11), 7015–7024. https://doi.org/10.1016/j.enpol.2011.07.055
Zhou, Y., Wang, M., Hao, H., Johnson, L., & Wang, H. (2015). Plug-in electric vehicle market penetration and incentives: A global review. Mitigation and Adaptation Strategies for Global Change, 20(5), 777–795. https://doi.org/10.1007/s11027-014-9611-2
Ziółkowski, A., Fuć, P., Jagielski, A., Bednarek, M., & Konieczka, S. (2023). Comparison of the energy consumption and exhaust emissions between hybrid and conventional vehicles, as well as electric vehicles fitted with a range extender. Energies, 16(12), Article 4669. https://doi.org/10.3390/en16124669