Search for an affordable clean car: Pricing of conventional and clean automobiles
UK has one of the world’s largest automobile markets, with a growing share of alternative fuel vehicles (AFVs), and a great importance to the economy. However, an extensive insight into the price drivers of conventional vehicles (CVs) and AFVs is lacking in the literature. Therefore, this paper estimates the determinants of automobile prices, applying a hedonic pricing model to a novel, extensive dataset of 2008–19. Using adaptive Lasso and weighted quantile regressions, the key drivers of prices are performance and size, with the effect growing stronger with prices. More specifically, one standard deviation increase of engine power and weight increases prices by 16.9% and 14.7% respectively. AFVs display a significantly greater sensitivity to changes in car characteristics compared to CVs, especially to changes in performance, emissions, and equipment. Furthermore, hedonic price indices show that about 65% of the price increase in 2008–19 was caused solely by improvements in vehicle quality.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/issn/13619209
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Supplemental Notes:
- © 2023 Elsevier Ltd. All rights reserved. Abstract reprinted with permission of Elsevier.
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Authors:
- Mandys, Filip
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0000-0001-7545-737X
- Publication Date: 2023-5
Language
- English
Media Info
- Media Type: Web
- Features: References;
- Pagination: 103738
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Serial:
- Transportation Research Part D: Transport and Environment
- Volume: 118
- Issue Number: 0
- Publisher: Elsevier
- ISSN: 1361-9209
- Serial URL: http://www.sciencedirect.com/science/journal/13619209
Subject/Index Terms
- TRT Terms: Automobiles; Environmental impacts; Markets; Pricing
- Geographic Terms: United Kingdom
- Subject Areas: Environment; Finance; Highways; Vehicles and Equipment;
Filing Info
- Accession Number: 01881291
- Record Type: Publication
- Files: TRIS
- Created Date: Apr 26 2023 9:46AM