Modelling Malaysians willingness-to-pay for electric cars: evidence from discrete choice data

2020 ◽  
Vol 11 (1) ◽  
pp. 33-33
Author(s):  
Meenchee Hong ◽  
Nabsiah Abdul Wahid
Keyword(s):  
Willingness To Pay ◽  
Discrete Choice ◽  
Carbon Emission ◽  
Multinomial Logit Model ◽  
Recent Decade ◽  
Choice Modelling ◽  
Choice Data ◽  
Road Transportation ◽  
Electric Cars ◽  
Electric Car

Road transportation is the major contributing factor of increasing carbon emission to the environment that eventually leads to the severe air pollution. In recent decade, electric vehicles (EVs) have been introduced to replace fossil fuel cars as a way to reduce carbon emission from the road. The study examines Malaysians willingness-to-pay for electric cars by utilising the discrete choice modelling approach. Consumers in Kuala Lumpur and Penang were sampled and given sets of alternatives determined from a systemically review of past studies to make their choices. The choices are made up of three important attributes of EVs: the price, driving range and charging time of the vehicle. This paper also describes the relationship between socio-demographic factors of consumers and their buying decision. Results show that brand, design and safety features of the electric car significantly influence willingness-to-pay for electric cars. This study also reveals that Malaysians have low knowledge and willingness to purchase electric cars. The main reason was the costly battery replacement. Nonetheless, some respondents are willing to pay a higher price for a better performance electric car. The findings may be beneficial to policymakers and car producers in both profit gaining and environment protection. Keywords: Electric cars, willingness-to-pay, multinomial logit model, random utility theory, consumption, carbon emission

Analyzing German consumers’ willingness to pay for green electricity tariff attributes - a discrete choice experiment

2020 ◽  
Author(s):  
Michael Danne ◽  
Saramena Meier-Sauthoff ◽  
Oliver Musshoff
Keyword(s):  
Willingness To Pay ◽  
Discrete Choice Experiment ◽  
Discrete Choice ◽  
Choice Experiment ◽  
Online Survey ◽  
Renewable Energy Sources ◽  
Multinomial Logit Model ◽  
Green Energy ◽  
Green Electricity ◽  
Electricity Tariff

Abstract Background: In order to achieve an environmentally friendly and sustainable energy supply, it is necessary that this goal is supported by society. In different countries worldwide it has been shown that one way consumers want to support the energy transition is by switching to green electricity. However, few people make the leap from their intention to a buying decision. This study explores parameters that influence whether German consumers would hypothetically decide to switch to a green electricity tariff.Methods: A quota-representative online survey including a discrete choice experiment with 371 German private households was conducted in 2016. For the econometric analysis, a generalized multinomial logit model in willingness to pay space was employed, enabling the estimation of WTP values to be as realistic as possible.Results: The results show that consumers’ decision whether or not to make the switch to green energy is mainly influenced by the source of green energy, whether a person can outsource the switching process, and a person’s attitude towards the renewable energy sources levy that currently exist in Germany.Conclusions: The findings indicate that politics should focus on supporting wind and solar energy as German consumers prefer these sources over biogas. As the results suggest, the EEG levy is a reason why consumers have lower WTP for switching to a green tariff. Therefore a switching bonus with a specifically “framed” bonus in the amount of the current EEG levy could be a promising strategy for the increase of green energy tariff acceptance. Furthermore, attention should be given to psychological and behavioral aspects, as the results indicate that these factors influence the consumer’s choice for a green electricity tariff.JEL classifications: C23, C25, Q40, Q50

scholarly journals Consumers’ wine preferences in a changing scenario

2018 ◽  
Vol 120 (1) ◽  
pp. 18-32 ◽  
Author(s):  
Cristina Escobar ◽  
Zein Kallas ◽  
José M. Gil
Keyword(s):  
Economic Crisis ◽  
Discrete Choice ◽  
Design Methodology ◽  
Multinomial Logit Model ◽  
Discrete Choice Experiments ◽  
Choice Modelling ◽  
Content Type ◽  
Socioeconomic Changes ◽  
Discrete Choice Modelling ◽  
The Impact

Purpose Important socioeconomic changes have been undergone due to the international economic crisis. In Catalonia (Spain), political changes towards independentism also occurred within the same period. The purpose of this paper is to explore the consumers’ wine preferences in Catalonia in two different scenarios. In particular, the authors have focussed the interest in those preferences regarding the regional origin of the wine. Design/methodology/approach Data were elicited from two identical discrete choice experiments performed in two times: before (2008) and during the economic crisis (2010) in Catalonia, Spain. Findings The results imply that the external common circumstances may have had a homogenising influence in consumer choices by decreasing the level of randomness of consumers’ selection. Consumers’ preferences for a Catalan origin were enhanced during the crisis, while price became the most important attribute. Research limitations/implications Ideally, the participants involved in both experiments would have been the same. Unfortunately, this was not possible to maintain and it is one of the limitations of this study. The authors are also aware that other non-controlled variables may have also played a role and the conclusions that are driven should be taken carefully. Originality/value This paper contributes to the literature of the discrete choice modelling using the recently developed Generalized Multinomial Logit Model. To the knowledge this is the first application in the literature of wine preferences to measure the impact of the contextual changes (economic and political) in Catalonia (Spain).

scholarly journals Analyzing German consumers’ willingness to pay for green electricity tariff attributes: a discrete choice experiment

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
M. Danne ◽  
S. Meier-Sauthoff ◽  
O. Musshoff
Keyword(s):  
Willingness To Pay ◽  
Discrete Choice Experiment ◽  
Discrete Choice ◽  
Choice Experiment ◽  
Online Survey ◽  
Renewable Energy Sources ◽  
Multinomial Logit Model ◽  
Green Energy ◽  
Green Electricity ◽  
Electricity Tariff

Abstract Background In order to achieve an environmentally friendly and sustainable energy supply, it is necessary that this goal is supported by society. In different countries worldwide it has been shown that one way consumers want to support the energy transition is by switching to green electricity. However, few people make the leap from their intention to a buying decision. This study explores parameters that influence whether German consumers would hypothetically decide to switch to a green electricity tariff. Methods A quota-representative online survey including a discrete choice experiment with 371 German private households was conducted in 2016. For the econometric analysis, a generalized multinomial logit model in willingness-to-pay space was employed, enabling the estimation of WTP values to be as realistic as possible. Results The results show that consumers’ decision whether or not to make the switch to green energy is mainly influenced by the source of green energy, whether a person can outsource the switching process, and a person’s attitude towards the renewable energy sources levy that currently exist in Germany. Conclusions The findings indicate that politics should focus on supporting wind and solar energy as German consumers prefer these sources over biogas. As the results suggest, the EEG levy is a reason why consumers have lower WTP for switching to a green tariff. Therefore, a switching bonus with a specifically “framed” bonus in the amount of the current EEG levy could be a promising strategy for the increase of green energy tariff acceptance. Furthermore, attention should be given to psychological and behavioral aspects, as the results indicate that these factors influence the consumer’s choice for a green electricity tariff.

Discrete Choice Modelling (Teil I)

2008 ◽  
Vol 37 (7) ◽  
pp. 356-362 ◽  
Author(s):  
Jochen Gönsch ◽  
Robert Klein ◽  
Claudius Steinhardt
Keyword(s):  
Discrete Choice ◽  
Choice Modelling ◽  
Discrete Choice Modelling

scholarly journals The Impact of Environmental Sustainability Labels on Willingness-to-Pay for Foods: A Systematic Review and Meta-Analysis of Discrete Choice Experiments

Nutrients ◽  
2021 ◽  
Vol 13 (8) ◽  
pp. 2677
Author(s):  
Anastasios Bastounis ◽  
John Buckell ◽  
Jamie Hartmann-Boyce ◽  
Brian Cook ◽  
Sarah King ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Discrete Choice ◽  
Environmental Sustainability ◽  
Purchasing Power Parity ◽  
Meta Analysis ◽  
Choice Experiments ◽  
Discrete Choice Experiments ◽  
Environmental Damage ◽  
Environmentally Sustainable ◽  
The Impact

Food production is a major contributor to environmental damage. More environmentally sustainable foods could incur higher costs for consumers. In this review, we explore whether consumers are willing to pay (WTP) more for foods with environmental sustainability labels (‘ecolabels’). Six electronic databases were searched for experiments on consumers’ willingness to pay for ecolabelled food. Monetary values were converted to Purchasing Power Parity dollars and adjusted for country-specific inflation. Studies were meta-analysed and effect sizes with confidence intervals were calculated for the whole sample and for pre-specified subgroups defined as meat-dairy, seafood, and fruits-vegetables-nuts. Meta-regressions tested the role of label attributes and demographic characteristics on participants’ WTP. Forty-three discrete choice experiments (DCEs) with 41,777 participants were eligible for inclusion. Thirty-five DCEs (n = 35,725) had usable data for the meta-analysis. Participants were willing to pay a premium of 3.79 PPP$/kg (95%CI 2.7, 4.89, p ≤ 0.001) for ecolabelled foods. WTP was higher for organic labels compared to other labels. Women and people with lower levels of education expressed higher WTP. Ecolabels may increase consumers’ willingness to pay more for environmentally sustainable products and could be part of a strategy to encourage a transition to more sustainable diets.

scholarly journals Consumer willingness-to-pay for restaurant surcharges to reduce carbon emissions: default and information effects

2021 ◽  
pp. 1-29
Author(s):  
Dede Long ◽  
Grant H. West ◽  
Rodolfo M. Nayga
Keyword(s):  
Climate Change ◽  
Willingness To Pay ◽  
Contingent Valuation ◽  
Carbon Emissions ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Dichotomous Choice ◽  
Carbon Reduction ◽  
The Mean ◽  
Agriculture And Food

Abstract The agriculture and food sectors contribute significantly to greenhouse gas emissions. About 15 percent of food-related carbon emissions are channeled through restaurants. Using a contingent valuation (CV) method with double-bounded dichotomous choice (DBDC) questions, this article investigates U.S. consumers’ willingness to pay (WTP) for an optional restaurant surcharge in support of carbon emission reduction programs. The mean estimated WTP for a surcharge is 6.05 percent of an average restaurant check, while the median WTP is 3.64 percent. Our results show that individuals have a higher WTP when the surcharge is automatically added to restaurant checks. We also find that an information nudge—a short climate change script—significantly increases WTP. Additionally, our results demonstrate that there is heterogeneity in treatment effects across consumers’ age, environmental awareness, and economic views. Our findings suggest that a surcharge program could transfer a meaningful amount of the agricultural carbon reduction burden to consumers that farmers currently shoulder.

scholarly journals Valuation Survey of EQ-5D-Y Based on the International Common Protocol: Development of a Value Set in Japan

2021 ◽  
pp. 0272989X2110018
Author(s):  
Takeru Shiroiwa ◽  
Shunya Ikeda ◽  
Shinichi Noto ◽  
Takashi Fukuda ◽  
Elly Stolk
Keyword(s):  
Discrete Choice ◽  
Health Care Policy ◽  
Mixed Logit ◽  
Health State ◽  
Choice Data ◽  
Social Functions ◽  
Value Set ◽  
A Value ◽  
Value Sets ◽  
Utility Scale

Background EQ-5D-Y is a preference-based measure for children and adolescents (aged 8–15 y). This is the first study to develop an EQ-5D-Y value set for converting EQ-5D-Y responses to index values. Methods We recruited 1047 respondents (aged 20–79 y) from the general population, stratified by gender and age group, in 5 Japanese cities. All data were collected through face-to-face surveys. Respondents were asked to value EQ-5D-Y states for a hypothetical 10-y-old child from a proxy perspective using composite time tradeoff (cTTO) and a discrete choice experiment (DCE). The discrete choice data were analyzed using a mixed logit model. Latent DCE values were then converted to a 0 (death)/1 (full health) scale by mapping them to the cTTO values. Results The mean observed cTTO value of the worst health state [33333] was 0.20. Analysis of the DCE data showed that the coefficients of the domains related to mental functions (“Having pain or discomfort” and “Feeling worried, sad, or unhappy”) were larger than those for the domains related to physical and social functions. By converting latent DCE values to a utility scale, we constructed a value set for EQ-5D-Y. No inconsistencies were observed. The minimum predicted score was 0.288 [33333], and the second-best score was 0.957 [12111]. Conclusion A value set for EQ-5D-Y was successfully constructed. This is the first survey of an EQ-5D-Y value set. Interpreting the differences between EQ-5D-Y and EQ-5D-5L value sets is a future task with implications for health care policy.

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