A new study published in the International Journal of Transportation Research, co-authored by CGS Assistant Research Director Jiehong Lou, explores vehicle purchase behavior with a focus on alternative fuel vehicles (AFVs), through a two-way modeling approach. The report finds that economic and demographic factors, including income, homeownership, family structure, and location, significantly influence vehicle purchase decisions.
In the United States, growing reliance on personal vehicles increases household costs, congestion, and carbon emissions, creating economic and environmental challenges. As demand for AFVs such as electric and hybrid cars rises, understanding the factors that drive or hinder their adoption is critical. Identifying these drivers and barriers will enable transportation planners, energy companies, and vehicle manufacturers to create more effective strategies for promoting AFV adoption, helping reduce the economic and environmental impacts of car dependence.
Several key economic and demographic factors influence vehicle purchases, especially AFVs. Higher-income households are more likely to purchase new vehicles, while renters and households with fewer workers tend to buy fewer cars. Families with more children or a higher proportion of male members are less likely to purchase new vehicles, additionally, African American households and individuals aged 51-65 have lower vehicle purchase rates. In contrast, those over 65 are more inclined to buy vehicles. Location also plays a significant role, with urban households more likely to purchase vehicles, a factor with implications for transportation infrastructure planning.
“Addressing income disparities, incentivizing low-density areas, and improving access to alternative fuel vehicles are crucial to reducing car dependence and its related environmental impact,” said Jiehong Lou, CGS Assistant Research Director and co-author of the study. “This research highlights how spatial factors, like rural versus urban locations, can guide infrastructure development, such as EV charging stations. Targeting rural areas and offering economic incentives for lower-income households or non-homeowners can drive AFV adoption.”
Another factor influencing purchase decisions is household characteristics. Income and homeownership strongly affect vehicle type choices, while factors like family structure and gender distribution impact preferences for sedans, sports sedans, and pickup trucks. Regional differences also influence vehicle choice, with rural households generally purchasing fewer vehicles and Western regions exhibiting a stronger preference for non-gasoline cars.
The study also underscores the role of fuel efficiency in vehicle purchase decisions, particularly for non-gasoline vehicles, where a 10% increase in fuel efficiency significantly boosts purchase likelihood across all vehicle types. Vehicle price affects different categories differently: sports sedans and pickup trucks are less sensitive to price changes, while consumers are more price-sensitive toward sedans, especially gasoline models. Overall, the study emphasizes that household characteristics, including income, homeownership, and location density, significantly impact vehicle purchase choices, with lower-density areas showing a stronger preference for non-gasoline vehicles.
The rapid adoption of electric and hybrid vehicles offers a promising route to reducing the environmental impact of conventional cars. Key strategies to increase sustainable transportation use include improving access to AFVs, offering incentives for lower-income households, and focusing on rural areas where non-gasoline vehicles are more likely to succeed. By tackling these disparities, policymakers can develop targeted approaches that promote AFV adoption while alleviating household economic approaches and supporting a cleaner, more equitable transportation future.
Check out the study here.
