Identifying the factors affecting the willingness to pay for fuel-efficient vehicles in Turkey: A case of hybrids

Abstract

This paper aims to determine the factors that have an impact on the consumers' willingness to pay a premium for hybrid automobiles in Turkey. A web-based random survey was conducted in different regions of Turkey. A questionnaire was administered to 1983 participants in January-March of 2009. The questionnaire was prepared by taking the issues raised in various sources into account. An ordered Probit model was used to meet the objective. Results show that variables such as income, gender, education, concerns about global warming, number of automobiles, importance of automobile performance, risk preference, attitude toward the alternative energy sources have an impact on the consumers' willingness to pay a premium for hybrids. Findings suggest that consumers who have high income, higher educational level, and concerns about the global warming are more likely to pay a premium for hybrids. This study is expected to make important contributions to the current literature related to the consumers' willingness to pay for hybrids by providing a research study from a developing country's perspective. Results of this study also make important contributions to the policy and decision makers, environmental groups and automotive industry.Hybrids WTP Consumers