||The statistical annual reports show that in Taiwan the transportation sector has been the third contributor to CO2 emission followed the energy and industrial sectors since 1990. Therefore, the transportation sector is one of primary targets that national energy saving and carbon reduction policy aims at. Hybrid electric vehicle (HEV) is only one branch of the vehicles powered by alternative energy sources developed by governments and major automobile manufacturers. However, due to the relatively mature technology and cheaper price, it has the highest commercial level and adoption rate. This study uses contingent valuation method to investigate the individual attitude, behavior, and socio-economic factors that have an impact on consumers’ willingness to buy and estimates the maximum premium willingness to pay for HEVs. Furthermore, this study analyzes the issues about the change of willingness to buy under reduction and exemption from commodity tax for HEVs and the preference about hypothetically preferential policies as well.|
The final number of valid questionnaires is 580, and the main study results show that the understanding of current policy about commodity tax 50% cut for HEVs, the extent of the air pollution in Taiwan endangering their own health, consumers who regard the emissions of CO2 and air pollutant as the most or second important vehicle attribute when they decide to buy a car, consumer who has his/her own business, and the bonus in 2011 or the latest year are statistically significant and positively related to the maximum premium willingness to pay for HEVs, but age has statistically significant and negative effect. In addition, the estimated values of maximum premium willingness to pay for HEVs are about 0.16 million using both OLS and interval regression models, and 0.14 million by ordered probit model.
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