What influences personal purchases of new energy vehicles in China? An empirical study based on a survey of Chinese citizens

Currently, many Chinese cities are suffering from the mounting pressures of deteriorating environmental quality, particularly in the form of serious air pollution that contributes to fog and haze. An important reason for urban air pollution is the rapid increase in automobile ownership and usage, which has increased gasoline consumption and waste gas production. Thus, it is important - and even necessary - to develop new energy vehicles (NEVs) to mitigate the environmental problems associated with automobile usage. However, the market share of NEVs in China is still relatively low. For the sake of boosting NEV sales, research should be conducted on this market, particularly regarding Chinese consumers' preferences for and intentions to purchase environmentally friendly vehicles. This study employs a carefully designed questionnaire survey of potential electronic vehicle consumers in seven Chinese cities. An empirical analysis based on the survey data is performed to investigate the main factors influencing the purchase of electronic vehicles. The estimation results indicate that monthly income, the number of cars a family owns, sustainability and vehicle comfort strongly influence consumers' purchasing behavior. Furthermore, age, marital status, city of residence, the number of cars a family owns, and the extent of police familiarity concerning NEVs are all proven to be significantly determinants of consumers' purchasing intentions. Moreover, based on our results, several political suggestions are provided to encourage the development of the Chinese NEV market.