The Willingness to Pay for Light Electric Vehicles in the City of Manila, Philippines
DOI:
https://doi.org/10.47941/ijecop.2513Keywords:
Willingness to Pay, Electric Vehicles, PolicyAbstract
Purpose: As the use of electric vehicles (EV) emerges in various countries, governments have been engaged to adopt the alternative vehicle and implemented policies to promote and develop the industry of EV. However, to adopt electric vehicles it is vital to identify the attitudes of consumers towards the new mode of transportation. This study examined the determinants of consumers' willingness to pay for light electric vehicles.
Methodology: The study conducted a research survey with 385 respondents in Manila City, using a quantitative research design and partial least squares structural equation modeling (PLS-SEM), to determine their willingness to pay (WTP) for light electric vehicles (LEVs).
Findings: The findings of the study indicate that age, educational attainment, income, environmental benefits, cost, safety, speed, and policy do have a positive influence on WTP. Consequently, sex does not have a significant impact on willingness to pay, suggesting that it could be a significant indirect driver relative to other determinants of WTP.
Unique Contribution to Theory, Practice and Policy: The study recommends providing a direct form of subsidy, such as fiscal incentives, to support the growing perceived demand for LEV. Moreover, the Philippine government should lift the ban on light electric vehicles on national roads, as this will significantly contribute to the growth of the electric vehicle industry in the Philippines.
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