Adoption intention and willingness to pay for electric vehicles: role of social-psychological attributes, fiscal incentives and socio-demographics

Abstract

Purpose

The purpose of this present study is to analyze the role of consumers' social-psychological attributes, fiscal incentives and socio-demographics in the adoption intention and the willingness to pay more for electric vehicles (EVs).

Design/methodology/approach

A cognitive linkage model of “beliefs-intention-willingness” is analyzed using valid responses obtained from Indian consumers. The model is statistically tested at three levels: direct path effect of social-psychological attributes with financial incentives (subjective norm, personal norm, affective attitude, perceived knowledge) on adoption intention and willingness to pay, followed by the mediation of intention and the moderation of socio-demographics.

Findings

The findings reveal that the adoption intention and the willingness to pay are directly driven by all analyzed factors except financial incentives, which is not significantly associated with willingness to pay. Moreover, the adoption intention partially mediated the relation between all socio-psychological measures and willingness to pay, whereas full mediation of incentives is supported. Furthermore, the moderating effect of socio-demographics (gender, education, income) supports the integrated research model.

Research limitations/implications

The generalizability of findings may be warranted due to the limited sample territory and the sample's youth. However, young people, or millennials, are more receptive to new technologies such as electric or carbon-free automobiles. The research advocates marketers and manufacturers to craft policy interventions and strategies to upsurge the EV demands in the backdrop of emerging markets.

Originality/value

This timely study adds to the extant literature on green and clean technology automobile adoption by exemplifying the relationship between socio-psychological beliefs, intention and willingness to pay at three dimensions of contextual factors. The current study endeavors to endorse the “beliefs-intention-willingness” cognitive linkage framework in the context of Indian green transportation.

Citation

Kant, R., Mehta, B., Jaiswal, D. and Kumar, A. (2024), "Adoption intention and willingness to pay for electric vehicles: role of social-psychological attributes, fiscal incentives and socio-demographics", Management of Environmental Quality, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MEQ-05-2023-0161