Patience and the adoption of electric vehicles: an application of the dual-self model
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Patience and the adoption of electric vehicles: an application of the dual‑self model Wujin Chu1 · Hyunsik Kim2 · Meeja Im3 Accepted: 9 October 2020 © Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract Solutions to environmental protection programs involve changes in human behavior. This study examined the importance of consumer patience and car usage on adoption of electric vehicles. Purchase of an EV requires patience both in terms of waiting for a longer payback period, and coping with the inconveniences of adjusting to a new technology. This research applied and extended the dual-self model of Fudenburg and Levine (Am Econ Rev 96(5):1449–1476, 2006) to the EV purchase context. The study extended the original model by relaxing the assumptions on the relation between self-control cost and net benefit from action. The modeling proved two results: that patient individuals and individuals with greater car usage are more likely to be early adopters of electric vehicles. Data collected from electric vehicle owners in Korea were compared to data from internal combustion vehicle owners. Two key variables, patience and car usage, were measured and regressed on the dependent variable of vehicle type owned. A logistic regression result showed supporting evidence for the two hypotheses. Implications for manufacturers and governments, based on the results, are discussed. Keywords Electric vehicles · Dual-self model · Patience · Earl adopter · Environmentally-friendly behavior
* Wujin Chu [email protected] Hyunsik Kim [email protected] Meeja Im [email protected] 1
College of Business Administration, Seoul National University, 1 Gwanak‑ro, Gwanak‑gu, Seoul 08826, South Korea
2
Department of Business Administration, Hallym University, 1 Hallymdaehak‑gil, Chuncheon‑si, Gangwon‑do 24252, South Korea
3
Department of Business, Cyber University of Korea, 106 Bukchon‑ro, Jongno‑gu, Seoul 03051, South Korea
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JEL Classification M31
1 Introduction The automotive industry is going through a transformational change from internal combustion engine vehicles (ICVs) to electric vehicles (EVs). The main reason for this shift is the public’s concern over air quality and greenhouse gas emissions. Also from an industrial competitiveness perspective, success in EVs could have major economic ramifications for auto-producing nations. Accordingly, many governments have implemented monetary incentives to encourage consumer adoption of EVs, and some have even stated an ending year, after which ICVs cannot be sold. To date, more than a billion dollars of monetary incentives have been disbursed by national governments in order to encourage adoption of EVs. The rationale for this policy is the presumption that monetary incentives would be effective in inducing consumers to purchase EVs. However, it could be the case that monetary incentive is only one of many agents of change in consumer behavior. Previous literature has identified three broad motivation for purchasing EVs. First, environ
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