Sharing Is Caring: An Economic Analysis of Consumer Engagement in an Electric Vehicle Sharing Service

Abstract

A growing population and increasing consumer demand have created unprecedented pressures on the environment and natural resources. The private vehicles market, one of the largest markets in the world, is associated with considerable environmental costs. Sharing electric vehicles, where consumers can enjoy the benefits of a greener vehicle without owning it, has emerged as an innovation that can reduce some of the environmental costs of ownership. However, uncertainty around the determinants of participation remain. This study employs an econometric model using survey and experimental data that were collected at the initial stages of the roll-out of an electric-vehicle-sharing service in Malta, in order to identify the psychological factors that determine the willingness to use and to pay for such a service, the propensity to walk to a car-sharing station, as well as the likelihood of scrapping a privately owned vehicle. The findings suggest that engagement in the car-sharing market is more likely to take place among those who have a lower psychological attachment to the private car, are already using multiple transport methods and are sharing a car with other household members. A large number of cars per household and a high use are negatively associated with uptake. The results also suggest that consumers who care about the environment are more likely to engage in car sharing.