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.

Well-to-Wheels for Light-Duty Vehicle Powertrains by Segments in Isolated Systems

“…Indeed, they have always been popular on the islands given their topography and the agricultural activity conducted in rural areas. However, the change in urban consumer behavior with respect to new SUV registrations puts the climate goals at risk [26].…”

“…Our contribution to the literature is an analysis of the case of island territories. The study meets many of the characteristics described above in that it considers: (i) a remote area for fuel transport by tankers; (ii) an isolated electric power systems, characterized by difficulties in the introduction of renewables (with a share of around 21%) and high electricity losses from the grid (over 8%); (iii) that the mobility routines of island inhabitants cover fewer kilometers per day than continental users, impacting the charging patterns of PEVs; and (iv) a car market where sport utility vehicles (SUV) have dominated new registrations in previous years (reaching more than half of total new car registrations) [26]. The results provide information relevant to policy development or investment decisions based on environmental awareness related to light-duty vehicle transportation.…”

“…There was a notable increase in the SUV segment's share of recently-registered vehicles; this share was 30% in 2015 and grew to above 50% in 2020 [39]. SUVs are less aerodynamic, heavier, and therefore less efficient [26]. This share trend is troubling, being much higher than the European figures in 2019 (27%).…”