Consumer behavior towards new energy vehicles: Developing a theoretical framework

Abstract

New energy vehicles (NEVs), owing to their low carbon emission, have gained immense importance to achieve the net-zero emission target. The global NEVs market has grown significantly over the last decade. China, the United States (US), and Europe are the leading markets for NEVs. This study systematically and critically reviews NEV literature on consumer behavior pertaining to NEV adoption. An attempt is made to uncover the current research trends, research settings, theoretical perspectives, and key factors influencing consumer behavior towards NEVs. These factors are further categorized into five broad factors: (a) economic factors, (b) policy and regulatory factors, (c) psychological factors, (d) infrastructural and technological factors, and (e) demographic factors. Through a critical analysis of existing theories, this study delineates the complex phenomenon of consumer behavior towards NEV adoption, offering a holistic understanding of the key factors influencing consumer behavior. This review suggests that purchasing price, charging infrastructures, consumers' attitudes towards the environment, and government policies are decisive to NEV adoption. This study contributes to the NEV adoption literature by proposing an integrated theoretical framework. Further, it outlines the managerial and policy implications for transitioning towards NEVs to achieve net-zero emission targets.

Keywords: Climate change; Consumer behavior; Net-zero targets; New energy vehicle; Systematic literature review; Technological innovation.