Fuel efficiency effect on car buying choice

The results of a research to study the fuel efficiency effect in acquiring a new vehicle are presented. The methodology is based on applying a stated preference survey in the context of a choice experiment with two unlabeled alternatives, which are characterized by the car cost and fuel efficiency.B...

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Bibliographic Details
Main Authors:	Morales-Rodríguez, Julián Eduardo, Ortiz-Durán, Deysy Jeannette, Márquez-Díaz, Luis Gabriel
Format:	Online
Language:	spa
Published:	Universidad Pedagógica y Tecnológica de Colombia 2016
Subjects:	automotive Market fuel Efficiency stated-preference surveys willingness to pay disposición a pagar encuestas de preferencias declaradas mercado automotor rendimiento del combustible
Online Access:	https://revistas.uptc.edu.co/index.php/ingenieria/article/view/4629

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Summary:	The results of a research to study the fuel efficiency effect in acquiring a new vehicle are presented. The methodology is based on applying a stated preference survey in the context of a choice experiment with two unlabeled alternatives, which are characterized by the car cost and fuel efficiency.Based on the data collected, a Multinomial Logit model was estimated, which allowed to study different choice scenarios. On average, it was found that individuals are willing to pay up to 1.020.000 Colombian pesos by a new vehicle which improves fuel efficiency at 1 kilometer/gallon. This value may be useful as reference for the automotive industry in the effort to produce higher performance vehicles.