Fuel efficiency effect on car buying choice

Efecto del rendimiento del combustible en la decisión de compra de vehículo

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Julián Eduardo Morales-Rodríguez
Deysy Jeannette Ortiz-Durán
Luis Gabriel Márquez-Díaz

Abstract

The results of a research to study the fuel efficiency effect in acquiring a new vehicle are presented. The methodology is based on applying a stated preference survey in the context of a choice experiment with two unlabeled alternatives, which are characterized by the car cost and fuel efficiency.

Based on the data collected, a Multinomial Logit model was estimated, which allowed to study different choice scenarios. On average, it was found that individuals are willing to pay up to 1.020.000 Colombian pesos by a new vehicle which improves fuel efficiency at 1 kilometer/gallon. This value may be useful as reference for the automotive industry in the effort to produce higher performance vehicles.

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