Are Malaysian consumers willing to pay for hybrid cars’attributes?

The Malaysian government has recently introduced a new National Automotive Policy in 2014. The policy aims to make Malaysia an Energy Efficient Vehicle (EEV) and component production hub for the ASEAN region. Since consumers’ preference of Hybrid Cars (HCs)/EEVs is strongly influenced by the attri...

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Main Authors:	Bakti Hasan-Basri, Muzafarshah Mohd Mustafa, Normizan Bakar
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2019
Online Access:	http://journalarticle.ukm.my/14072/ http://journalarticle.ukm.my/14072/ http://journalarticle.ukm.my/14072/1/jeko_53%281%29-10.pdf

id	ukm-14072
recordtype	eprints
spelling	ukm-140722020-01-31T22:30:46Z http://journalarticle.ukm.my/14072/ Are Malaysian consumers willing to pay for hybrid cars’attributes? Bakti Hasan-Basri, Muzafarshah Mohd Mustafa, Normizan Bakar, The Malaysian government has recently introduced a new National Automotive Policy in 2014. The policy aims to make Malaysia an Energy Efficient Vehicle (EEV) and component production hub for the ASEAN region. Since consumers’ preference of Hybrid Cars (HCs)/EEVs is strongly influenced by the attributes of those cars, thus this study wishes to investigate whether respondents’ preference for HCs is due to environmental or economic attributes. The study uses Choice Experiment technique where respondents’ preference are measured in terms of their Willingness to Pay for such attributes. Two formats of factors are applied, bundle of attributes and individual attributes. The objective of applying these two factors is to investigate whether bias in Independent Valuation and Summation (IVS) happens or not. The results on bundle show that the respondents prefer environmental attributes more than economic attributes when buying HCs. In terms of IVS, we found that bias in IVS does not occur. Three policy implications can be drawn. First, the Malaysian government needs to take necessary measures if they are keen to encourage the public to buy HCs. Second, more understanding and awareness campaigns on HCs need to be done by the government. Third, the noise levels of the engine is an important attribute that needs to be considered in developing the EEV industry in Malaysia. Penerbit Universiti Kebangsaan Malaysia 2019 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/14072/1/jeko_53%281%29-10.pdf Bakti Hasan-Basri, and Muzafarshah Mohd Mustafa, and Normizan Bakar, (2019) Are Malaysian consumers willing to pay for hybrid cars’attributes? Jurnal Ekonomi Malaysia, 53 (1). pp. 121-134. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2019.html
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	The Malaysian government has recently introduced a new National Automotive Policy in 2014. The policy aims to make Malaysia an Energy Efficient Vehicle (EEV) and component production hub for the ASEAN region. Since consumers’ preference of Hybrid Cars (HCs)/EEVs is strongly influenced by the attributes of those cars, thus this study wishes to investigate whether respondents’ preference for HCs is due to environmental or economic attributes. The study uses Choice Experiment technique where respondents’ preference are measured in terms of their Willingness to Pay for such attributes. Two formats of factors are applied, bundle of attributes and individual attributes. The objective of applying these two factors is to investigate whether bias in Independent Valuation and Summation (IVS) happens or not. The results on bundle show that the respondents prefer environmental attributes more than economic attributes when buying HCs. In terms of IVS, we found that bias in IVS does not occur. Three policy implications can be drawn. First, the Malaysian government needs to take necessary measures if they are keen to encourage the public to buy HCs. Second, more understanding and awareness campaigns on HCs need to be done by the government. Third, the noise levels of the engine is an important attribute that needs to be considered in developing the EEV industry in Malaysia.
format	Article
author	Bakti Hasan-Basri, Muzafarshah Mohd Mustafa, Normizan Bakar,
spellingShingle	Bakti Hasan-Basri, Muzafarshah Mohd Mustafa, Normizan Bakar, Are Malaysian consumers willing to pay for hybrid cars’attributes?
author_facet	Bakti Hasan-Basri, Muzafarshah Mohd Mustafa, Normizan Bakar,
author_sort	Bakti Hasan-Basri,
title	Are Malaysian consumers willing to pay for hybrid cars’attributes?
title_short	Are Malaysian consumers willing to pay for hybrid cars’attributes?
title_full	Are Malaysian consumers willing to pay for hybrid cars’attributes?
title_fullStr	Are Malaysian consumers willing to pay for hybrid cars’attributes?
title_full_unstemmed	Are Malaysian consumers willing to pay for hybrid cars’attributes?
title_sort	are malaysian consumers willing to pay for hybrid cars’attributes?
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2019
url	http://journalarticle.ukm.my/14072/ http://journalarticle.ukm.my/14072/ http://journalarticle.ukm.my/14072/1/jeko_53%281%29-10.pdf
first_indexed	2023-09-18T20:06:16Z
last_indexed	2023-09-18T20:06:16Z
_version_	1777407179451531264

Are Malaysian consumers willing to pay for hybrid cars’attributes?

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