Hybrid Electric Vehicles: Some Theoretical Considerations on Consumption Behaviour
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sustainability Article Hybrid Electric Vehicles: Some Theoretical Considerations on Consumption Behaviour Fabio Carlucci 1,* ID , Andrea Cirà 2 ID and Giuseppe Lanza 2 1 Department of Economics and Statistics, University of Salerno, Via Giovanni Paolo II 132, Fisciano 84084, Italy 2 Department of Economics, University of Messina, Piazza Pugliatti 1, Messina 98122, Italy; [email protected] (A.C.); [email protected] (G.L.) * Correspondence: [email protected] Received: 10 March 2018; Accepted: 18 April 2018; Published: 23 April 2018 Abstract: Solving the problem of the lack of environmental sustainability in transport activities requires the involvement of new technologies, particularly in populated cities where mobility activities play a major role in generating externalities. The move from cars powered by conventional internal combustion engines to cars powered by alternative energies can make an important contribution to reducing emissions and achieving a more sustainable transport system. Unfortunately, green car market development still remains uncertain because of the higher production costs of batteries and engines. In this context, surprisingly little attention has been devoted to analysing the economic factors affecting consumers’ behaviour in the choice of hybrid electric vehicles. To fill this gap, the diffusion process of hybrid technology as well as intrinsic and extrinsic motivations and the crowding-out effect on consumers’ purchasing decisions are taken under consideration. Finally, some policy recommendations are provided. Keywords: transport sustainability; hybrid vehicles; technological innovation; consumer behaviour 1. Introduction Environmental literature highlights that the impact of fossil fuel-based energy on the environment, particularly in terms of global climate change, has emerged as one of the biggest problems facing the planet [1]. In its last report (2014) [2] the Intergovernmental Panel on Climate Change (IPCC) concluded that “warming in the climate system is unequivocal, with many of the observed changes unprecedented over decades to millennia: warming of the atmosphere and the ocean, diminishing snow and ice, rising sea levels and increasing concentrations of greenhouse gases”. Despite the fact that a number of sceptics still continue to debate these propositions, and independently of their reliability, it is undeniable that this way of thinking has increased consumers’ concern for environmental problems, slowly changing their efforts to save energy and pushing technological innovation to the top of the policy agenda of many countries’ governments. Environmental quality is a key issue, particularly in developed countries, due to the high value of natural resources as perceived by the population. The sustainability of transport activities plays a key role for many cities and countries across the globe, because mobility activities generate relevant negative externalities for natural environments [1]. Moreover, agents lack economic incentives to adopt new “green” technologies that would reduce pollution levels as, in many cases, these agents are unmotivated to protect public goods such as the environment. Therefore, public intervention in the form of policies is needed to stimulate the adoption of environmentally-friendly innovations. Sustainability 2018, 10, 1302; doi:10.3390/su10041302 www.mdpi.com/journal/sustainability Sustainability 2018,, 10,, 1302x FOR PEER REVIEW 2 of 11 Nowadays, the increases in miles driven and the growth in the number of vehicles on the road offsetNowadays, the progress the made increases towards in miles cleaner driven engines. and the growth in the number of vehicles on the road offsetIn the this progress context, made alternative towards fuel cleaner vehicles engines. play a key role in reducing greenhouse gas emissions. Still, Inmarket this context, share still alternative remains limited fuel vehicles because play of athe key production role in reducing costs of greenhouse the batteries gas and emissions. engines requiredStill, market by these share vehicles still remains [3]. limited because of the production costs of the batteries and engines requiredIn Europe by these in vehicles2016, the [ 3percentage]. of new alternative vehicles (Liquified Petroleum Gas (LPG), naturalIn Europegas, and in Ethanol 2016, the E85 percentage fuels) was of only new 1.3% alternative, whereas vehicles the share (Liquified of diesel Petroleum and petrol Gas engines (LPG), wasnatural 49.5% gas, and Ethanol45.8%, respectively E85 fuels) was. The only percentage 1.3%, whereas of electric the share cars of dieselbought and increased petrol engines from wasthe preceding49.5% and year, 45.8%, going respectively. from 1.7% The in percentage2015 to 2.1% of in electric 2016 for cars hybrid bought electric increased vehicles from (HEV) the preceding and from year,1.4% goingto 1.5% from for 1.7%electrically in 2015 chargeable to 2.1% in vehicles 2016 for (ECV). hybrid Thus, electric overall, vehicles a reduction (HEV) and in from consumers’ 1.4% to 1.5%preference for electrically for traditional chargeable fuel cars vehicles and (ECV).an increa Thus,se in overall, electric a cars reduction purchased in consumers’ was registered preference in 2016 for (Figuretraditional 1). fuel cars and an increase in electric cars purchased was registered in 2016 (Figure1). Figure 1. Distribution of cars by fuel type in European Union (EU) 28 (Years 2015 and 2016). Source: Figure 1. Distribution of cars by fuel type in European Union (EU) 28 (Years 2015 and 2016). Source: Our elaboration on Eurostat data. The high price of green cars and the lack of refuelling/charging infrastructure, as well as long refuellingThe high times price and ofrestricted green cars driving and theranges lack compar of refuelling/charginged to conventional infrastructure, vehicles are, asamong well asothers, long somerefuelling of the times important and restricted factors that driving slow ranges the dev comparedelopment toof conventionalthe market for vehicles green cars are, [4]. among others, someThe of the presence important of network factors thatexternalities slow the can development also cause ofinertia the market in the development for green cars and [4]. diffusion of greenThe cars. presence Consumers of network are reluctant externalities to switch can to also a new cause vehicle inertia if in refuelling/charging the development and infrastructures diffusion of aregreen not cars. widely Consumers available are and, reluctant of course, to switch will prefer to a new conventional vehicle if refuelling/charging technologies if refuelling infrastructures stations are notabundant widely [5]. available and, of course, will prefer conventional technologies if refuelling stations are abundantNonetheless, [5]. new technological progress and innovative business models are emerging and manyNonetheless, environmentally new technological conscious consumers progress and increasi innovativengly choose business to models purchase are emerginggreen cars and and, many in particular,environmentally electric conscious hybrid vehicles. consumers increasingly choose to purchase green cars and, in particular, electricOne hybrid of the vehicles. simplest ways to extend the range of an electric car is to carry fuel and an efficient combustionOne of theengine simplest on-board ways to to generate extend theextra range electricity of an electric when carneeded. is to carryHybrid fuel vehicles and an run efficient on a conventionalcombustion engine internal on-board combustion to generate engine extraand ar electricitye equipped when with needed. an electric Hybrid propulsion vehicles system. run on Thesea conventional cars also internaluse regenerative combustion brakes engine in order and to are charge equipped the battery, with an converting electric propulsion kinetic energy system. to Theseelectrical cars energy. also use Hybrid regenerative electric brakestechnology in order also togenerates charge theless battery, pollution converting because a kinetic hybrid energy gasoline to engineelectrical is usually energy. smaller Hybrid than electric a pure technology gasoline also one. generates less pollution because a hybrid gasoline engineThis is usuallypaper is smaller organized than into a pure six sections, gasoline the one. first being this introduction. The next section gives an overviewThis paper of the is organized relevant literature into six sections, related theto the first choice being of this alternative introduction. fuel Thevehicles. next sectionIn Section gives 3, wean overviewdiscuss the of thepossible relevant determining literature relatedfactors toof theconsumers’ choice of willingness alternative fuelto pay vehicles. for hybrid In Section electric3, wevehicles. discuss In the fourth possible and determining fifth sections factors the theory of consumers’ of diffusion willingness of innovation to payand forthe hybriddifferent electric types Sustainability 2018, 10, 1302 3 of 11 vehicles. In the fourth and fifth sections the theory of diffusion of innovation and the different types of consumer purchasing motivation are described and adapted to the hybrid vehicle case. Section6 concludes with some important policy recommendations. 2. Methodology Used in Literature Analysis In the last 10 years, many studies devoted to analysing consumer preferences in adopting electric vehicles have been produced. These can be divided into two main groups. The first one is mainly focused on analysis related to defining which experimental design