Determining Factors of Consumers’ Choice of Sport Utility Vehicles in an Isolated Energy System: How Can We Contribute to the Decarbonization of the Economy?

Abstract

This paper analyses the profile of individuals who decide to purchase a Sport Utility Vehicle (SUV) in a medium-sized isolated island system such as Tenerife Island. To achieve this objective, we used a survey conducted in 2017 to identify the characteristics of the individuals most likely to choose an SUV or another type of vehicle or be undecided. Subsequently, a discrete choice model was estimated to assess the probability that an individual chooses one of the three options as a function of their socio-economic characteristics, mobility routines, vehicle attributes and psychosocial traits. The results show the need to adopt energy policy measures related to vehicle choice, as they put the fulfilment of the decarbonization objectives for the energy transition in the Canary Islands at risk. Firstly, the authorities should carry out campaigns to achieve a more environmentally conscious behaviour by highlighting the higher consumption and emission levels of this type of vehicle. Secondly, subsidies for more efficient new vehicles and taxation should promote the purchase of low-emission vehicles to compensate for the greater willingness to pay of SUV buyers. In particular, purchase taxation should be linked to emission levels rather than only considering power, engine characteristics or labelling.