Private household demand for vehicles on alternative fuels and drive trains: a review

Purpose Any attempt of the government to encourage the purchase of vehicles on alternative fuels and drive trains will depend on the acceptance of the end-users on the demand side. This paper offers an in-depth understanding of the consumers' attitudes and preferences towards AFVs which can guide the government to establish effective policy measures. Method A comprehensive review of research is performed under different conceptual frameworks and research methodologies: attitudinal, experimental, preference valuation studies and others. Research findings are reported with the general objective to (1) uncover the attitudes and preferences towards AFVs and (2) examine whether the environmental benefits of AFVs play a role in the car purchase decision. Results Overall, there exists a strong environmental concern, and positive attitudes towards AFVs. However, environmental benefits are of little importance in the car purchase decision, which is principally driven by price characteristics, performance and convenience attributes. Limited knowledge levels also seem to prevent building up awareness of AFVs, which is the key to their adoption. Conclusions The adoption of AFVs is likely to be limited without significant governmental incentives and regulations. Based on the key findings, it can be recommended that a combination of educational campaigns (e.g., information tools), pricing measures (e.g., differentiated vehicle taxation), supply-sided measures and large-scale demonstrations is required to support the adoption of AFVs.