Study on the Effect of the Alternative Fuel Vehicle on the Market Using the Joint Mixed Logit Model

Abstract

Preserving the environment has been one of the key topics of the government and industrys goal in the 21st century. As part of the movement, developing an eco-friendly vehicle has become one of the most promising method in sustaining the environment. The key to successful transformation of the automobile market will require both the support from government policies and the research & development effort of the firms to produce the right kind of alternative fuel vehicles. Based on the Korean market, this research use both revealed preference (RP) and stated preference (SP) data through joint mixed logit estimation to analyze the effect of the increasing EV and HV vehicles in the automobile market through the changes in the customers preferences. The results of this research will determine which alternative fuel vehicle is most preferred by the consumers, and how the market will change when such vehicles are diffused.