Hybrid electric vehicles: Some theoretical considerations on consumption behaviour

Solving the problem of the lack of environmental sustainability in transport activities requires the involvement of new technologies, particularly in populated cities where mobility activities play a major role in generating externalities. The move from cars powered by conventional internal combustion engines to cars powered by alternative energies can make an important contribution to reducing emissions and achieving a more sustainable transport system. Unfortunately, green car market development still remains uncertain because of the higher production costs of batteries and engines. In this context, surprisingly little attention has been devoted to analysing the economic factors affecting consumers' behaviour in the choice of hybrid electric vehicles. To fill this gap, the diffusion process of hybrid technology as well as intrinsic and extrinsic motivations and the crowding-out effect on consumers' purchasing decisions are taken under consideration. Finally, some policy recommendations are provided.