Nudging adoption of electric vehicles: Evidence from an information-based intervention in Nepal
Massimo Filippini, Nilkanth Kumar, Suchita Srinivasan
Abstract
Addressing hazardous levels of air pollution in densely populated cities in emerging countries requires concerted efforts to reduce fossil fuel use in the transport sector, such as through greater use of electric motorcycles. However, their adoption has been limited due to several market failures and behavioral anomalies. In this study, we collect novel data on more than 2,000 potential motorcycle buyers in Kathmandu, Nepal. Using randomization, we evaluate the effects of informational nudges on their stated choice to buy an electric motorcycle. We find evidence to suggest that our interventions play a role in determining the stated preference of respondents. Furthermore, results also hint at the importance of gender, health status and education in determining the effectiveness of these nudges. Implications of this study relate to policy choice in cities in developing countries, where fuel-inefficient vehicles are used widely, and the negative externalities due to air pollution are stark.