Journal of Korean Society of Transportation ISSN:1229-1366(Print) 2234-4217(Online) 대한교통학회지

The government is trying to increase the penetration rate of electric vehicles to reduce particulate matter, but electric vehicle sales are expected to decrease as the subsidy for electric vehicles is set to decrease every year. This study analyzed the characteristics of buyers affected by subsidy reduction. Two analysis methods were performed to analyze the purchase intention of eco-friendly vehicles and the purchaser’s propensity affected by subsidy reduction. As a result of the analysis of the purchase intention of eco-friendly vehicles, among the individual and household characteristic variables, income level, education, infants, children, apartment, and private car ownership affected purchase intention. Also, among attitude and disposition characteristic variables, environmental protection practices, local affiliation, health status, and interest in sports affected purchase intention. age, married, income, education, number of household members, infants, owning a car, and self-employed affected the purchasers’ propensity with regards to subsidy reduction. Eco-friendly cars are more popular with buyers with higher purchasing power because of higher price level compared to regular passenger cars, but some of the consumers may choose not to purchase the vehicles if the subsidy is reduced. In particular, as the purchase intention is more likely to be affected for buyers with low income, self-employed, or high interest in the environment, measures for improvement are necessary.