Preferable price to buy an electric two-wheeled vehicle for college students

Abstract

This research delves into the determinants affecting Taiwanese college students’ purchasing behavior towards two-wheeled electric vehicles (ETWVs) and the financial allocation they are willing to commit. A choice experiment design was utilized, with a sample of approximately 900 college students, regular users of two-wheeled gasoline vehicles (TWGs). The students engaged in one of two choice scenarios, presented with general characteristics, operational efficiency, vehicle cost, and subsidy strategies. Subsequent to the scenarios, respondents indicated their willingness to pay (WTP) for a ETWV. ETWVs, apart from being an emerging transportation alternative, also present potential environmental and health benefits due to reduced air pollution. The dependent inverse hyperbolic sine (IHS) double-hurdle model was employed, facilitating the accommodation of heteroscedasticity and correlated normality. The outcomes suggest that purchasing behavior for ETWVs among college students is shaped by factors such as purchase subsidy, tax breaks, and ETWVs’ capability in supporting students’ external travel requirements. The average WTP for ETWVs among this demographic stands at US$ 1,410. Importantly, the dependent IHS double-hurdle model, considering heteroscedasticity, proved statistically superior to its counterparts. Insights from this research offer crucial information on the price range students are likely to accommodate for ETWVs and provide a foundation for framing incentive-driven policies to amplify ETWV adoption.