Heterogeneous consumer preferences for alternative fuel cars in China

This paper models consumer preferences for alternative fuel cars and conventional, petrol fueled cars in China. It compares discrete choice model specifications where each specification reflects how consumers choose between alternative fuel cars and conventional types of cars. We find that, in China, consumers differentiate between the types of alternative fuel cars and are more likely to consider switching from petrol fuel vehicles to hybrid than to electric cars. Segmentation analysis is used to explore groups of consumers and their likelihood of adopting alternative fuel cars.

► We analyze consumer preferences for alternative fuel cars and conventional types of cars in China. ► Discrete choice model specifications are estimated and compared. ► Each model specification depicts preferences for alternative fuel and conventional types of cars. ► Segmentation analysis is also conducted between car owners and non-car owners.