Willingness to pay for photovoltaic solar cells equipped electric vehicles

Cities globally are moving toward electrified public and private transport. Metropolitan areas are now seeking ways to mitigate emission and are heading towards sustainable ways of using clean/ green energy sources by integrating and implementing new technology and science innovations into the transport systems. This study explores consumer preferences for installing photovoltaic solar cells on electric vehicles. In this paper, we have applied a double hurdle model to account for the low market penetration of electric cars in Australia and dealt with the high non-purchase choice. Data are obtained from nearly 1,900 individuals from eight major cities in Australia to explore consumer preferences regarding electric vehicles with photovoltaic solar cells option. The proposed model specification accounts for the panel impact generated from multiple tasks for each respondent, and the correlation between the two decisions on electric vehicle purchase and selecting the photovoltaic add-on. Furthermore, the systematic taste heterogeneity towards price variables is considered by introducing interactive sociodemographic terms to the utility functions. This study provides insights into the willingness-to-pay values for different features of electric vehicles and the solar panel add-on. The results show on average consumers are willing to pay a premium of $18.13 on purchase price for every daily additional kilometre in driving range generated by solar panels. The average willingness to pay for the solar panel to match the colour of vehicle is $1,021.09 for women, and $1,803.92 for men. This study informs policymakers and industries about the feasibility of such an emerging technology.