Towards a zero-carbon future : investigating the barriers that are limiting the adoption of electric vehicles in the Maltese islands

Abstract

As part of the national strategy in promoting sustainable development, the Maltese government is encouraging the adoption of electric vehicles in the Maltese Islands by providing consumers financial incentives. Yet, electric vehicle ownership results to be still very low. This study provides an understanding of the main barriers that are limiting the adoption of electric vehicles, considering also the effectivity of the vehicle's purchase price and running costs on consumers' decisions. The efficacy of current financial incentives is also evaluated to establish if such incentives are determinant in incrementing sales. Data collection was performed utilising an online questionnaire to individuals of 18 years of age and over, including both consumers who possess a driving licence and those who do not. The questionnaire survey was structured in three sections: the demographic section, Likert Scales and stated choice experiments. The demographic section gives a picture of the demography of the sample population, also providing valuable information in establishing the trends and patterns associated with electric vehicle purchase among different socio-demographic groups in the Maltese society. Likert scales evaluated consumer attitude, perceptions and knowledge towards electric vehicle adoption while stated choice experiments focused on economic factors considered as barriers in the adoption of such vehicles. The data obtained from the questionnaire survey was processed statistically employing crosstabulation, Chi-Square tests and the Multinomial logit model. Crosstabulation evaluated the association between individual socio-demographic variables and electric vehicle purchase, while Chi-Square tests examined the significance of each association. On the other hand, the Multinomial logit model assessed the effectiveness of purchase price, road licence cost, fuel/charging cost and battery replacement cost on the choice of the type of vehicle purchase. Furthermore, the statistical output was also supported by various graphical representations. This study concludes that purchase price and running costs result to be influential in determining consumers' decision on whether to purchase or otherwise an electric vehicle. Knowledge about such vehicles is still limited among the general public, therefore effective informative campaigns are necessary to increase awareness and reduce perceived risks associated with electric vehicles, which may arise when consumers perform purchase decisions based on heuristics (assumptions based on mental shortcuts). The findings of this research may result helpful when designing policies which aim in promoting an increase in the adoption of electric vehicles in the Maltese Islands, thus, contributing in reaching the target of carbon neutrality.