Willingness to Buy and/or Pay Disparity: Evidence from Fully Autonomous Vehicles

Yoo, Sunbin and Kumagai, Junya and Kawabata, Yuta and Keeley, Alexander and Managi, Shunsuke (2021): Willingness to Buy and/or Pay Disparity: Evidence from Fully Autonomous Vehicles.

Abstract

We seek to understand whether environmental concerns, fears of potential accidents, and merits regarding fully autonomous vehicles (FAVs) are motivators of willingness to buy (WTB) and willingness to pay (WTP) of FAVs. To do so, a large-scale survey on FAVs of more than 180,000 respondents was collected in Japan, and structural equation modeling (SEM) validated our findings. Interestingly, this study implicates a form of WTB-WTP disparity: those interested in natural environment conservation would purchase FAVs because they show high interest in overall social problems, and new technologies such as FAVs can resolve such problems, according to previous works. However, our result implies that they would not show high WTP because adopting FAVs does not `directly' contribute to natural environment conservation. Additionally, our results indicate that those who appreciate potential merits would have higher WTB and WTP, while those who fear FAV technology would not purchase FAVs and would have lower WTP. The results bear crucial policy implications for planners by showing the complexity between the factors of FAV WTB and WTP.

• Item Type: MPRA Paper
• Language: English
• Keywords: Fully autonomous vehicle; WTP; structural equation model; environmental concerns.
• Subjects: R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Economics; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Economics > R40 - General; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Economics > R41 - Transportation: Demand, Supply, and Congestion ; Travel Time ; Safety and Accidents ; Transportation Noise

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