Consumer intention to adopt electric vehicles through policy incentives: mediating and moderating roles of technology knowledge and environmental awareness

What the paper says

Purpose The purpose of this study is to investigate the role of policy incentives (PIs) on the adoption intention (AI) of electric vehicles (EVs). It also examines the mediating and moderating roles of technology knowledge (TK) and environmental awareness (EA) to promote EVs in the context of sustainable transportation. Design/methodology/approach A cross-sectional quantitative study using structured questionnaires is administered, and data from 312 responses are analysed with the help of SPSS and AMOS. Exploratory factor analysis is used to confirm the factor structure, while SEM is used to test the direct, mediating and moderating hypotheses. Findings The results of the study reveal that PIs significantly influence the AI of EVs. These incentives also impact the TK of consumers positively. TK is found to mediate the relationship between PIs and AI of EVs, signifying that PIs’ impact on EV adoption is enhanced if the consumer knows about EV technology. Furthermore, EA is found to moderate both PIs and TK relations with AI of EVs, implying that higher environmental consciousness converts PIs and TK into better adoption prospects. Research limitations/implications Based on technology acceptance model and theory of planned behaviour, this study integrates PIs with environmental and technological variables to analyse a comprehensive adoption framework for EVs. It examines the interplay between PIs, TK and EA and extends the multilayer understanding into consumer behaviour in the EV domain. Practical implications The focus of EV firms and policymakers, in addition to financial and non-financial incentives, should be on enhancing consumer knowledge about the EV technology. Making the masses aware of the environmental issues through sustainability messaging can significantly strengthen EV adoption rates. EV makers can use TK and EA as segmenting variables to develop tailormade strategies for EV adoption. Social implications This study shows how the impact of PIs can be complemented through TK and EA to encourage pro-environmental behaviour, such as the adoption of EVs in society. The combination of economic, technological and psychological factors is therefore required to bridge the socio-environmental gap that still exists globally. Originality/value This study integrates TK and EA with PIs to analyse their impact on EV adoption rates. The insights into direct, mediating and moderating roles of these variables thus offer new insights for advancing sustainable mobility.