Association for Public Policy Analysis & Management

Many of the benefits of switching from a standard gasoline vehicle to a plug-in electric vehicle (PEV) are social in nature, whereas the costs are private. Previous research from the early years of PEV market presence found that consumers’ perceptions of the costs and benefits of PEVs were often factually incorrect. In this study, we examine the extent of consumer knowledge about PEVs and the current policies in place to encourage their purchase. Using survey data from a probability-based panel of individuals in the largest U.S. cities, we assess how the accuracy of overall consumer perceptions about PEVs have changed between 2011, after modern PEVs were first introduced to U.S. markets, and 2017. We specifically assess knowledge about the relative difference in purchase price, fuel cost, maintenance cost, and range between PEVs and convention vehicles, as well as incentive availability in different jurisdictions. We also evaluate the degree to which misperceptions about these technical and policy characteristics affect one’s intent to purchase or lease a PEV. We find that, although respondent understanding about the technical and cost characteristics have improved over time, significant misunderstandings still persist. These misunderstandings tend to overestimate the drawbacks to PEVs and underestimate the benefits. Results from the regression analysis employed to assess predictors of intent to purchase a PEV indicate that environmental lifestyles and familiarity with PEVs and supporting technology (i.e., charging stations) matter. The regression results also reveal that the accurate perception that a PEV purchase incentive to defray the costs of acquiring a PEV exists in one’s locale is a significant predictor of stated intent to purchase. The actual presence of a broader suite of direct and indirect financial incentives, however, is not. In addition to reporting on such findings, our paper also discusses the practical implications thereof.