Abstract:

The entire automobile industry around the world is in upheaval due to the substantial environmental pollution originating from the road transport sector. The policy makers want to lower greenhouse gas emissions through alternative technologies, e.g. environmentally-friendly electric vehicles (EVs) that charge electricity from renewable energy sources, in order to minimize environmental impacts. This study analyzes the penetration by battery electric vehicles (BEVs) in Germany and examines two influential factors – policy measures and disclosing consumer-oriented total cost of ownership (TCOC) information. The authors conducted an online experiment with 379 participants in Germany. The results indicate a significant impact of the TCOC information weighted with the value differences and potential driving bans on ICEVs. Overall, the results indicate that consumers’ choice of BEVs can be positively influenced through a mixture of both the TCOC transparency for cost efficient BEVs and potential driving bans on ICEVs. These two potential influential factors could ultimately increase the market share of BEVs.