Willingness to Pay for Electromobility – an Investigation Among House Builders of Energy Efficient Houses



Willingness to Pay for Electromobility – an Investigation Among House Builders of Energy Efficient Houses

Authors

Leif Jacobs, Westphalian University, Karolyn Sandfort, Westphalian University, Stephan Keuchel, Westphalian University

Description

Builders of energy efficient houses are prepared to buy more energy efficient cars as are builders of conventional houses. Though, they do have a higher willingness to pay for electric cars. They seem to be a likely target group for electromobility.

Abstract

In order to evaluate whether builders of energy efficient houses will contribute to a sustainable electromobility two research questions were derived: Firstly, whether those who build more energy efficient houses will be more willing to reduce their automobile energy consumption. Secondly, whether their willingness to pay for electric cars will be higher compared with builders of less energy efficient, conventional houses.

To this end a survey among house builders in Germany was conducted. According to the energy standards of their houses the house builders were divided into two groups, the builders of energy efficient houses and the builders of conventional houses. Both groups were asked to describe the attribute levels of the latest car they bought or of the car they will purchase next and the one which was or will be replaced. This method allowed to compare the attribute levels of the desired cars with the attribute levels of those to be replaced for both groups. As a first result it seems that the two groups do not differ in a statistically significant way. Both groups tend to purchase cars at least as large and powerful they used to drive. But also both groups want to purchase a car with less fuel consumption.

The attribute levels of the desired cars served as a reference option in a stated discrete choice experiment with both groups of house builders. In several different hypothetical choice situations they were offered to choose between the desired car, a plug-in hybrid car (PHEV), and a battery electric car (BEV) with or without a range extender. Within the framework of random utility theory a multinomial logit model was estimated. The coefficients of the utility functions link the choice probabilities and the differences of the attribute levels of the electric cars with the respective attribute levels of the desired car. Rather differentiated utility functions were estimated for both, the PHEV as well as the BEV. Further, a coefficient for a variable indicating the two groups of house builders was estimated statistically significant as well. This means firstly, both electric car options gave a genuine utility especially to the builders of energy efficient houses. The willingness to pay was, therefore, estimated and amounted to around 4500 € for the PHEV and to around 5600 € for the BEV compared with that of builders of conventional houses. Therefore, builders of energy efficient houses can be seen as a potential target group for electric vehicles.


PROJECT INFORMATION

This study (acronym ‘ZABENEM’) was financed within the ElektroMobil.NRW2010 programme of the federal state NRW and ERDF. It was produced in cooperation with the architectural office Thiel in Münster.

Publisher

Association for European Transport