PERCEPTION and Reality: an ASSESSMENT of PUBLIC KNOWLEDGE of PLUG-IN ELECTRIC VEHICLES

PERCEPTION AND REALITY: AN ASSESSMENT OF PUBLIC KNOWLEDGE OF PLUG-IN ELECTRIC VEHICLES

Rachel M. Krause, University of Texas at El Paso, 915-747-7086, [email protected] Sanya Carley, Indiana University, 812-856-0920, [email protected] Bradley W. Lane, University of Texas at El Paso, 915-747-7132, [email protected] John D. Graham, Indiana University, 812-855-1432, [email protected]

Overview Concerns about the environment and foreign oil dependence have led to a renewed interest in alternative fuel vehicles, and particularly plug-in electric vehicles (PEVs), which run solely on electricity. Over the last several years, the governments of virtually all of the world’s developed countries have provided incentives to encourage the production and consumption of electric vehicles (SPEA, 2011). In the United States, as part of the Obama Administration’s stated goal of having 1 million electric vehicles on U.S. roadways by 2015, the federal government offers consumer tax credits of up to $7,500 for the purchase of an electric vehicle and has subsidized battery technology research and development, as well as the installation of electric charging stations. Numerous state and local governments have adopted complementary policies that offer additional direct financial incentives or provide PEV drivers with conveniences such as favored access to high occupancy vehicle (HOV) lanes and city parking. Despite promotional efforts, PEVs face significant challenges in gaining mainstream acceptance (Nixon and Saphores, 2011). A number of recently administered surveys and public opinion polls suggest that significant portions of the population are unwilling to even consider purchasing a PEV (Deloitte, 2011). There is also evidence that people are often uninformed or have incorrect understandings about many of the basic features, benefits, and drawbacks of electric vehicles as well as related public policies (Axsen and Kurani, 2008), which may lead to both under and overestimates of the private value of owning an electric vehicle. This article examines the type of degree of citizens’ misunderstandings about electric vehicles and addresses three research questions: 1) How knowledgeable is the mainstream public about the basic attributes of PEVs, particularly as they compare to standard vehicles? 2) How aware is the public about existing state and local PEV incentives? 3) How could the dissemination of complete and accurate information affect the publics’ level of interest in PEVs?

Methods The data for this study comes from a web-based survey administered to a random sample of adults with current driver’s licenses. The survey sample was limited to individuals that reside in 21 of the largest cities in the United States, where electric vehicle markets are most likely to form in coming years. Each city had between 101 and 120 responses, for a total of sample of 2,302 individuals. Observations are weighted on gender, age, race, and educational attainment to reflect each city’s demographic make-up. Findings regarding the accuracy of people’s knowledge about electric vehicles and the state and local policies used to promote them are based primarily on descriptive statistics.

Results Analysis of the survey responses indicates that people have a high degree of misperception about basic features of electric vehicles. About 45% of respondents do not gauge correctly the cost premium of an electric car over an otherwise similar gasoline vehicle. Over 70% of respondents are not aware of the extent of potential fuel savings associated with a PEV and almost 90% do not gauge properly the likely maintenance expenses. A full 65% are misinformed about PEV’s maximum driving range on a single charge. The majority of incorrect responses underestimate the advantage or performance of PEVs.

Respondents are also unaware of the state and local policies promoting PEV ownership that are available to them. Five incentives are considered in this paper: vehicle purchase subsidies, subsidies for charging equipment, HOV lane access, discounted parking, and discounted license and registration fees. Each of these incentives lower the cost or increase the advantage of PEVs, thus a lack of policy knowledge results in an underestimate of the actual private benefits associated with their ownership. A negligible number of the respondents (2.6%) that live in jurisdictions where these incentives are currently available are aware of them. This suggests that these policies are not effectively being communicated to the public and are thus unable to meaningfully impact either perception or purchase behavior regarding PEVs. Conclusions Plug-in electric vehicles are regarded by many experts and government officials as being able to contribute to the public goals of reduced oil dependence and increased environmental sustainability. However, most members of the public have a limited, and often incorrect, knowledge of PEVs and related policies. The analysis in this paper suggests that respondents’ lack of information limits mainstream interest in the vehicles to a level below what it otherwise would be. The diffusion of correct information about current PEV cost and operating characteristics and already existing public policies could shift the negative story that is often painted about the likelihood of widespread PEV acceptance.

References Axsen, J., & Kurani, K. 2008. The early U.S. market for PHEVs: anticipating consumer awareness, recharge potential, design priorities and energy impacts. Institute of Transportation Studies, University of California, Davis.

Deloitte. 2011. Unplugged: Electric vehicle realities versus consumer expectations. Available from: www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/Manufacturing/dttl_Unplugged_Global %20EV_09_21_11.pdf

Nixon, Hilary and Jean-Daniel Saphores. 2011. Understanding Household Preferences for Alternative-Fuel Vehicle Technologies. Mineta Transportation Institute (MTI). Online: http://transweb.sjsu.edu/PDFs/research/2809- Alternative-Fuel-Vehicle-Technologies.pdf

School of Public and Environmental Affairs (SPEA). 2011. “Plug-in Electric Vehicles: A Practical Plan for Progress.” School of Public and Environmental Affairs, Indiana University.