Abstract:

This paper analyzes households’ preferences for electric and hybrid cars in Istanbul. The authors apply an adaptive choice-based conjoint approach that adjusts the survey in real-time according to respondents’ initial responses. The authors find a low potential for electric cars but a significant latent demand for hybrid cars. Among the three urban policies considered, it is more effective to subsidize the parking of electric cars and bridge and tunnel crossing fees of hybrid cars. Respondents’ valuations of these policies are about $2,070 in the life cycle of a car. The authors estimate that respondents are willing to pay $3.4, $14.8, and $20.7 to increase the driving range by 1 km for hybrid, conventional, and electric cars, respectively. They are willing to pay about $258 to decrease the recharge time of an electric car by 1 min or to make recharge stations more common so that their detour time to reach stations decreases by 1 min.