Accepted Manuscript

Modelling Electric Vehicle Usage Intentions: An Empirical Study in Malaysia

Yew-Ngin Sang, Hussain Ali Bekhet

PII: S0959-6526(14)01341-9
DOI: 10.1016/j.jclepro.2014.12.045
Reference: JCLP 5016

To appear in: Journal of Cleaner Production

Received Date: 4 July 2014

Revised Date: 12 December 2014
Accepted Date: 12 December 2014

Please cite this article as: Sang Y-N, Bekhet HA, Modelling Electric Vehicle Usage Intentions: An
Empirical Study in Malaysia, Journal of Cleaner Production (2015), doi: 10.1016/j.jclepro.2014.12.045.

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 ACCEPTED MANUSCRIPT

Modelling Electric Vehicle Usage Intentions: An Empirical Study in Malaysia

Yew-Ngin Sang & Hussain Ali Bekhet*
Graduate Business School, College of Graduate Studies,
Universiti Tenaga Nasional (UNITEN), Malaysia
[email protected]; [email protected]
* Corresponding author
Abstract: In the new global economy, carbon emission has become an important worldwide issue. One key reason

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for this is the magnification of the transport sector, as millions of gasoline-based vehicles are plying on roads
producing carbon emission throughout day and night. In order to impede these vulnerabilities and promote a more
sustainable economy, one solution is to switch from gasoline-based vehicles to using green technology vehicles.
There is growing agreement that electrification and the ability to ‘decarbonize’ this sector seems to be significant, as

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it helps to mitigate the high reliance on fossil fuels and reduce carbon emissions. The introduction of electric
vehicles has led the automotive industry to a whole new echelon, one with zero fuel dependency and increased fuel
efficiency. While the usage of greener and cleaner vehicles, such as electric vehicles, is well supported with

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government policies and programs, it is surprising that little information is divulged about the public acceptance of
electric vehicles from the social perspective. Public acceptance and diffusion of this new green technology is
relatively fresh and unknown in Malaysia. In fact, public acceptance can appear as a prevailing obstacle for market
diffusion and encumber the development of technology adoption. The rationale of this paper is to conduct an
exploration to determine the key predictors affecting the usage of electric vehicles acceptance in Malaysia. Malaysia

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has been referred to here, as electric vehicles are just being introduced as one of the initiatives to encourage a low
fossil carbon technology within the transportation sector. More specifically, an empirical study using a survey
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questionnaire was distributed to 1,000 private vehicle drivers in Malaysia. An electric vehicle usage model was
proposed based on a literature review and a multiple regression model. The results demonstrated that electric
vehicles acceptance in Malaysia can be explained as being significantly related to social influences, performance
attributes, financial benefits, environmental concerns, demographics, infrastructure readiness and government
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interventions. In addition, the study offers a valuable wealth of information on the public acceptance of automotive
players planning to market electric vehicles in Malaysia. It also offers sensible guidelines for the formulation of
marketing strategies that will address the real wants and needs of future electric vehicles users. In the meanwhile,
policy-makers should concentrate on the appropriate intervention and policy to encourage the development of
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electric vehicles as part of the strategy towards a transition to a low carbon society in Malaysia.
Keywords: Electric Vehicle; Usage Intentions; Public Acceptance; Regression Model; Malaysia
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Highlights:
- This research determines the key predictors influencing electric vehicles usage intention.
- We found seven key predictors to be statistically significant towards electric vehicles usage intention.
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- The results offer sensible guidelines for the policy formulation and marketing strategies.
- Electric vehicles deployment will improve energy efficiency and carbon emissions in Malaysia.

1. Introduction
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It has been extensively recognized that climate change and carbon emission are by far the biggest ordeals
of the new millennium. The amplification in the number of automobiles is one of the key reasons and it
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was reported that there are currently almost 1 billion vehicles globally, consuming about 60 million
barrels of oil per day (about 70% of the total oil production). On average, private vehicles consumed
petroleum at about 36 million barrels/day and so emitted roughly 14 million tons of carbon dioxide daily.
In addition, these same vehicles emitted 114 trillion British Thermal Units (BTU) of heat every day
(Reisinger & Emadi, 2013). Emissions generated in such quantities raises serious concerns about global
climate change and air quality, especially in high-density urban and suburban areas, where most of the
mobility activities take place. This was made worse by the fact that the current internal combustion
engines vehicle technology can only provide a maximum efficiency of 30% (Emadi, 2011).

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For the Malaysian scenario, energy demands from the transportation sector increased sharply between
1990 and 2012. The share in energy demand in the year 2012 was recorded at 36.8% and was the highest
among all of the sectors in the country (Energy Commission, 2014). In addition, the average growth rate
of newly registered private vehicles stood at 8.7% (Road Transport Department, 2012). In terms of CO2
emissions, the transportation sector continued to be one of the largest emitters in the country (Lim & Lee,
2012). Previous findings on the transportation sector reported that energy efficiencies from this sector
were merely at 18.88% (Saidur et al., 2007). In addition, it was reported that only 12.6% of the total

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energy is used as a useful exertion in terms of automobile internal combustion (Mahlia et al., 2012). This
situation was further worsened by ineffective public transportation, which has resulted in extreme reliance
on private vehicles. The usage of public transportation in the country was reported at only 16%; this is

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considered the lowest, among other Asian peers (Ong et al., 2012). An uncertain future of fossil fuel
accessibility and stricter rulings on carbon emissions are presently a real concern. It is also the biggest
challenge faced by automotive industries worldwide. With the current challenges of the uncertainty in oil

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prices and the desire for a security policy in many countries dependent on oil imports, finding an
alternative solution is necessary for sustainable transportation (Electrification Coalition, 2009).
Governments worldwide are imposing strategies and plans to reduce carbon emission (Ustun et al., 2011).

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By the year 2020, the United Kingdom is targeting to reduce carbon emissions by 45% (Huang & Infield,
2009). European Union (EU) countries are planning to trim down their emissions by 20% (European
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Commission, 2010). As for Malaysia, the government pledged during the United Nations Climate Change
Conference (UNFCCC) in Copenhagen in 2009 to reduce its carbon emissions by as much as 40%, based
on their 2005 levels, by the year 2020. Green technology application in automotives has been identified as
a viable solution to impede these vulnerabilities and promote a sustainable economy. Presently, one of the
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most prominent sustainable answers to strongly reduce oil consumption and carbon emissions lies in
electric vehicles (EVs). These vehicles are propelled, either partially or fully, by electricity through
energy storage systems, such as electrochemical batteries, which need to be charged from the grid (Wang
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et al., 2013).The well-known advantages and some of the reasons why EVs are starting to be popular
include zero direct emissions, a reduction in oil dependency, and silent operation. The availability of the
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technologies required for EVs and the demand for higher efficiency has created a genuine interest for EVs
in the car market. Consequently, it has encouraged almost all car manufacturers to develop their own EV
models (Ustun et al., 2013).
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The introduction of EVs into the Malaysian market has led the automotive industry to a whole new
echelon in zero fuel dependency and increased fuel efficiency. Although EVs may reduce the tailpipe
emission from the vehicle, the advantages in term of total emission are rather marginal if coal is still used
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to power the electricity generation. Therefore, the government has intensively promoted the wider use of
renewable energy such as biomass and solar to reduce dependency on coal besides to have a better mix of
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electricity generation within the country (MEGTW, 2009). While the usages of greener and cleaner
vehicles, such as EVs, are well supported with government policies and programs, little information is
divulged about the public acceptance of EVs from the social perspective. As the introduction of EVs is
relatively new in Malaysia, there is no prior study or investigation that was carried out on Malaysian
drivers to gauge the public acceptance levels and usage intentions of this new vehicle technology. As a
matter of fact, public acceptance can emerge as a powerful impediment for market diffusion and can
hinder the development of EV adoption in Malaysia.

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Driven by the desire to investigate this under-researched area and with a view to highlight the major
predictors that will affect public acceptance towards EVs usage intentions, the current research was
conducted to better understand and bridge the gap between EV supply and demand issues. More
specifically, this study extends the framework of the Theory of Planned Behaviour (TPB) to explore EVs
acceptance in Malaysia. In order to develop an appropriate research model for the current study, a
literature review relating to TPB and the factors that may lead to usage intentions were undertaken. This
will be followed by the hypotheses development and research methods. Subsequently, the results and

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policy implications are presented and discussed.

2. Literature Review

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The TPB seems to be the model that was extensively used to predict usage intentions in the context of the
transportation research domain. This includes studies on speeding intentions (Cristea et al., 2013; Horvath
et al., 2012), travel mode choices (Chen & Chao, 2011; Hsiao & Yang, 2010), drink and drive behaviour

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(Moan, 2013; Rivis et al., 2011) and seat belt usage (Okamura et al., 2012). In this current research, the
TPB extension is used as the underlying model, proposing a conceptual framework to explain the usage
intentions of EVs in Malaysia.

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The TPB posits that human action is guided by three kinds of reflections: beliefs about the likely
outcomes of the behaviour (behavioural beliefs), beliefs about the normative expectations of others
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(normative beliefs), and beliefs about the presence of factors that may further or hamper the performance
of the behaviour (Ajzen, 1991). Collectively, behavioural beliefs produce a favourable or unfavourable
attitude toward the behaviour; normative beliefs result in a subjective norm; and control beliefs give rise
to the perceived behavioural control of performing the behaviour. In combination, the attitude, subjective
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norm, and perceived behavioural control lead to the formation of a behavioural intention. The TPB also
permits for the inclusion of additional variables, provided that these variables make a noteworthy input to
the explanation of the behaviour provided by the model (Ajzen, 1991).
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Existing consumer theories have provided a collection of insights into the principles that influence the
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preference of the consumers. Various models have been developed and tested over time to explore the
multiple issues relevant to consumers’ reactions in relation to technology adoption. In order to better
understand public acceptance from the viewpoint of usage intentions, it is necessary to understand all the
external and internal influences around it (i.e. the technology, the consumers and the environment) (Faiers
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et al., 2007). The adoption of new alternative fuel vehicles is dependable on a number of dynamics.
These dynamics include: (a) should they be perceived in upbeat reflection provisions; (b) should they be
comparable or perform better than existing fuels and technologies; (c) should they be competitively priced
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within the reach of the average consumer; (d) should they present minimum impacts on social, economic
or environmental sustainability; (e) should they offer adequate infrastructure and support systems for
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charging and maintenance; and (f) should they receive consistent support from public policies (Browne,
O’Mahony, & Caulfield, 2012; Montalvo, 2008).
Based on this assertion, we expand the usage intention paradigm by incorporating variables, such as
social influences, performance attributes, financial benefits, environmental concerns, demographics,
infrastructure readiness and government interventions, to be investigated directly in this study. As EVs
are relatively new in Malaysia, the current number of EVs plying on the road is still low. Hence, it was
not practical to investigate their actual adoption at the present time. Therefore, we instead decided to
investigate usage intentions in this study. The previous studies have also confirmed that usage intentions
are the best predictor of technology diffusion behaviour. Usage intentions can also serve as a proxy and

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contribute to the prediction of actual technology acceptance (Bamberg et al., 2003; Armitage & Conner,
2001).

2.1. Social Influence (SI)

Social influence is defined as the extent to which an individual perceives that important others (i.e. family
and friends) believe they should use a particular technology (Venkatesh et al., 2003). The idea of social
influence is that the individual’s behaviour is influenced by them as a result of having used the
technology. Eppstein et al. (2011) suggested that social influence on behaviour is a relevant factor that

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impacts choice. Social externalities, such as peer pressure, social influences and social norms, may
influence purchase decisions (Daziano & Chiew, 2012). Interpersonal influence also plays an important
role in a car buyer’s assessment of ‘green’ vehicle technology (Axsen & Kurani, 2011). The ‘neighbour

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effect’ was found to influence consumers to purchase hybrid EVs (Mau et al., 2008). Lascu & Zinkhan
(1999) and Lee (2008) found that peer influence was the most important factor in green purchasing
behaviour. According to Ramayah et al. (2009), culture, in terms of attitudinal and social variables, will

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play a significant role towards adoption factor, as Malaysia is a collectivist culture where social norms are
valued and individual actions are influenced by the group to whom one identifies himself/herself with, or
who are important to him/her or those who would think he/she should conduct a specific behaviour.

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2.2. Performance Attributes (PA)
Previous research has found that the purchase decision-making process was very much influenced by
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vehicle performance and economic concerns (Adamson, 2005; Kang & Park, 2011). In a study on hybrid
vehicles, it was found that performance considerations, such as comfort, quietness, ease of driving and
automatic transmission, were among the most important factors influencing consumer adoption (Ozaki &
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Sevastyanova, 2011). In other studies, it was suggested that limited travelling range is an irresistible
substantial shortcoming potential for consumer decisions (Beggs & Cardell, 1980; Bunch, et al., 1992;
Calfee, 1985; Greene, 1985; Hensher, 1982). Therefore, it was concluded that consumers will be reluctant
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to purchase a car with limitations in a short driving range and long recharging time (Cheron & Zins,
1997). A study on German car buyers found that the majority of the respondents preferred more
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horsepower when making a purchasing decision (Achtnicht, 2012). In the meanwhile, in a study among
Chinese consumers, performance attributes, such as riding comfort, safety, convenience of use, and
operability, were found to have impact on the acceptance of a new energy vehicle (Zhang et al., 2013).
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The previous studies have proven that many consumers choose to take into consideration vehicle
performance before making a purchase decision.

2.3. Financial Benefits (FB)

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Previous empirical studies have divulged that consumers are concerned with financial benefits and are
willing to adopt greener vehicles which could reduce the operational cost and improve fuel efficiency
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(Mourato et al., 2004). It appears that adoption would depend on whether there are direct financial
benefits, conveniences or habits (Said et al., 2003). Upfront purchase price is also an important factor in
determining vehicle acceptance (Lane & Potter, 2007).Generally, the majority of consumers will only
select cleaner fuels if the price is competitive with existing fuels and the environmental considerations
will always be surpassed by price and availability (Bomb, McCormick, Deurwaarder, & Kåberger, 2007).
The benefit of a lower fuel cost can be an advantage to prospective alternative fuels vehicle buyers
(Heffner, Kurani, & Turrentine, 2007; Ozaki & Sevastyanova, 2011). The decision to adopt a cleaner
vehicle was influenced by maintenance costs and some other complementary expenditures (Adamson,
2005; de Haan et al., 2006; Potoglou & Kanaroglou, 2007). Recent evidence shows that financial benefits

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are an important motive of consumers to purchase cleaner vehicles (Zhang et al., 2013). Previous research
has shown that price, quality, convenience and value are still the most important buying criteria (Roberts,
1996). Stern (1992) proposed that attitudes supporting behaviours are most likely to be converted into
actions if it involves little cost in terms of time, money or comfort. In a recent poll conducted among
Malaysians, it was found that consumers will purchase hybrid vehicles primarily for the tax incentives
and savings on fuel costs (The Star Online, 2013). Based on a study conducted by Frost and Sullivan, it
was determined that most Malaysians had a strong preference for greener vehicles, provided that there

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were economically viable (The Star Online, 2014).Therefore, the researchers believe financial benefits
play an important role in influencing intentions to use EVs among Malaysians.

2.4. Environmental Concerns (EC)

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In the context of this study, environmental concerns were defined as the degree to which people are aware
of problems regarding the environment and support the effort to solve them or indicate the willingness to
contribute personally to the solution. Sensitivity to climate-change issues, awareness of clean energy and

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energy conservation constitutes explicit dimensions of environmental concerns (Zimmer et al., 1994). As
there is a general increase in environmental concerns across the population, Roberts (1996) strongly
suggests that this important relationship be further investigated. Environmental concern was suggested as

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being more influential for some behaviours than others (Roberts & Bacon, 1997; Schahn & Holzer,
1990). Several studies confirmed that consumer’s environmental concerns influence the purchasing
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behaviour of environmentally safe products (Balderjahn, 1988; Ellen et al., 1991; Martin & Simintiras,
1995; Roberts & Bacon, 1997). There is also support of environmental concern’s direct and indirect
effects on consumers’ willingness to procure green products at a premium price (Bang et al., 2000; Hansla
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et al., 2008; Laroche et al., 2001). In addition, prior studies on new vehicle technologies have attempted
to recognize how environmental benefits may affect customer decisions (Ewing & Sarigollu, 1998; Gould
& Golob, 1998; Schuitema et al., 2013).
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2.5. Demographics (DG)

Many researchers have suggested that demographic characteristics impact intentions to use a product.
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Age, gender, education, income and family size have been found to be significantly correlated with
environmental behaviour (Martinsons et al., 1997; Roberts & Bacon, 1997; Roberts, 1996). It was found
that ecologically conscious consumers are more likely to be older consumers and be females, but be
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somewhat more receptive to environmental claims in product advertising. Newell & Green (1997) showed
positive relationships between income and environmental behaviours. This was because individuals with
a higher income level can bear the marginal increase in costs associated with favouring green products. In
research on California households on preferences for alternative fuel vehicles, it was revealed that
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college-educated respondents preferred EVs (Brownstone et al., 2000). This is because well educated
people are better informed, and thus, have a stronger eagerness to preserve the environment (Torgler &
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García-Valiñas, 2007). In terms of green consumption, women were reported to significantly participate
more than men (Mainieri et al., 1997). A study in Canada found that women were willing to pay more for
cleaner vehicles than men (Daziano & Bolduc, 2013). Segmentation variables (i.e. gender, age and
education level) were very much significant in preferences towards the adoption of cleaner vehicles
(Potoglou & Kanaroglou, 2007). In a study on German consumers, it was significantly found that younger
individuals preferred low-emission vehicles more than older individuals (Achtnicht, 2012). In the case of
the Malaysian scenario, Bekhet & Al-alak (2014) and Bekhet & Al-allak (2011) found a significant
relationship between demographics and usage intentions in the use of e-statements banks.

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2.6. Infrastructure Readiness (IR)

Sperling & Kitamura (1986) acknowledged that the factor impeding the introduction of new
transportation fuel is the absence of retail infrastructure selling those fuels. This is particularly important
during decision-making processes of whether or not to buy a vehicle running on a new fuel type. In the
meanwhile, findings by Dagsvik et al. (2002) implied that alternative fuel vehicles will only appear to be
competitive with conventional vehicles, provided the refuelling infrastructure is in place. EVs are usually
perceived as having an inadequate mobility range. Hence, the drivers may experience ‘range anxiety’,

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where they feel ‘stranded’ if charging facilities are not offered (Browne et al., 2012). A lack of charging
facilities may also lead to the perception that EVs are unsuitable for long distance trips (Melaina &
Bremson, 2008). This has dampened the adoption of EVs, despite their low environmental impact and

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high energy efficiency (Anegawa, 2010; Martin et al., 2009). Thus, the establishment of vehicle charging
infrastructures is very crucial to permit the smooth deployment of electric mobility (Silvester et al., 2013).
EVs disadvantages, as compared to conventional vehicles, include limited driving ranges and longer

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recharging times (Garling & Thogersen, 2001; Ustaoğlu & Yıldız, 2012). Schroeder & Traber (2012)
suggested that a fast-charging infrastructure will benefit and facilitate long-range drivers of EVs; this may
be crucial in helping push EVs towards market penetration. This is very much supported by Liu (2012),
who suggested that the spatial distributions are both largely determined by charging demands / local

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refuelling, even though the fact that there are many differences between EVs charging infrastructure and
petrol refuelling stations. Thus, recharging patterns and habits will play an important role should the
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consumers intend to switch to EVs. Due to the peculiarities in Malaysia that public transportation such as
rail system and buses for long distances are not very efficient, many medium and long distance mobility
are still dependable on private vehicle. Therefore, if the user were to choose to use EVs for their travelling
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for medium and long distances, charging station is certainly a compulsory. For that reason, the researchers
believe that infrastructure readiness plays an important role in order to increase market penetration.
Therefore, it will directly influence the usage intentions of the public.
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2.7. Government Interventions (GI)

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In a study on public efforts to support EV deployment in Japan, Åhman (2006) found that policy support
is one of the crucial determinants for success. Incentives that target vehicle ownership has been proven to
be effective in controlling overall vehicle ownership (Jansen & Denis, 1999). A differentiated subsidy
scheme was suggested as part of the public policy in the United States (US) in order to increase the
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penetration of EVs (Skerlos & Winebrake, 2010). Similarly, in Canada, a reduction in monetary costs,
‘tax-free purchase’ incentives and low emission rates will encourage households to adopt environmentally
cleaner vehicles (Potoglou & Kanaroglou, 2007). Subsidies for the purchase of fuel efficient vehicles are
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an important economic instrument to encourage the purchase of low emission vehicles (Santos et al.,
2010). Based on a study conducted in Ireland by Rogan et al. (2011), it was suggested that ownership tax
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differentials and incentives can positively influence the purchasing decisions of alternative fuelled
vehicles. Tax rebates were found to be positively affected by the large increase in the market share of
hybrid vehicles in Canada (Chandra et al., 2010) and Switzerland (de Haan, Peters, & Scholz, 2007).
Previous studies also found that the impact of a vehicle excise duty on carbon emissions reduction has
caused a rapid uptake of more efficient vehicles (Borup, 2007). Recent evidence in the US also suggests
that feebate programs are effective for accelerating the adoption of hybrid vehicle technology (Gallagher
& Muehlegger, 2011). The pricing and taxation of vehicle ownership will also affect purchasing
behaviour, overall ownership and the use of vehicles (Brand et al., 2013). In a study conducted among
Malaysian consumers, it was found that government’s role plays an important predictor of green

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purchasing behaviour (Sinnappan & Rahman, 2011). In this study, the researchers believe that
government intervention, such as subsidizing the purchase price, will increase EVs purchase intentions in
Malaysia.
3. Proposed EVs Acceptance Model
This proposed integrated model of the EV Acceptance in the Malaysian perspective was developed by
drawing from TPB models and the topical technological literatures. This model is rather a modified and

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revised model that addresses the peculiarities of EVs as a ‘green’ invention. Building upon the existing
literature, a one-stage normative model was developed, presenting the basis for this study’s research
objectives. Furthermore, as the purpose of the current study is to investigate the predictors that have a
direct impact on the EVs usage intentions, relevant and essential factors are added to the development of

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this proposed model.
The model depicted in Figure 1, relates to the independent and dependent variables with no intervening

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variables. The model is shown as assertive in nature, in lieu of the causal relationship, and consists of
seven independent variables. These variables include: Social Influences (SI), Performance Attributes
(PA), Financial Benefits (FB), Environmental Concerns (EC), Demographics (DG), Infrastructure

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Readiness (IR) and Government Interventions (GI).

Social Influence
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(SI)
Performance Financial Benefits
Attributes (PA) (FB)
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Usage Demographic
Environmental
Intention (DG)
Concern (EC)
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(INT)
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Government Infrastructure
Intervention (GI) Readiness (IR)
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Figure 1: Electric Vehicles Acceptance Model

4. Hypotheses
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It is quite evident from the review of the literature that there exists a large body of research on the EVs
dimensions of the acceptance model. However, so far, as within the researcher’s knowledge, there is a
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scarcity of empirical research on EVs dimension that have a noticeable influence on the usage intentions
of this innovative product, in particular, and in turn, on related acceptance. Being an integral part of the
wider theoretical background and based on the literature review, the EVs usage intentions were assumed
to be influenced by a number of factors. Accordingly, it is hypothesized that:
H1: There is a positive statistically significant relationship and impact between Social Influences (SI) and
Usage Intentions (INT).
H2: There is a positive statistically significant relationship and impact between Performance Attributes
(PA) and Usage Intentions (INT).

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H3: There is a positive statistically significant relationship and impact between Financial Benefits (FB)
and Usage Intentions (INT).
H4: There is a positive statistically significant relationship and impact between Environmental Concerns
(EC) and Usage Intentions (INT).
H5: There is a positive statistically significant relationship and impact between Demographics (DG) and
Usage Intentions (INT).
H6: There is a positive statistically significant relationship and impact between Infrastructure Readiness

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(IR) and Usage Intentions (INT).
H7: There is a positive statistically significant relationship and impact between Government Interventions
(GI) and Usage Intentions (INT).

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5. Sample and Procedure
A survey was designed and implemented to collect empirical data with respect to the factors that

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influence the EVs usage intentions in Malaysia. The required primary data was obtained through a self-
administered questionnaire. Since it was not feasible to get the list of all drivers in Malaysia, a non-
probability judgmental sampling technique was employed to gather data from the respondents. To

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reassure their perceptions are based on familiarity and the experience of driving vehicles, the
questionnaire was given only to the respondents who had prior vehicle driving experience and possessed a
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valid private vehicle driving license.
The questionnaire was distributed between December 5, 2013 and April 24, 2014. The survey response
rate was 75.1%. Respondents were drawn from 4 states out of 13 in Malaysia. The respondents were
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drawn from the State of Selangor, the Federal Territories (Kuala Lumpur and Putrajaya), Johor and
Penang. The justification for choosing these areas was the distributions of the high number of private
vehicle drivers and vehicles. A total of 1,000 questionnaires were distributed to Malaysian drivers.
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Participation was voluntary and no remuneration was offered. In order to establish the content validity of
the items, the questionnaire was adopted and modified from an extensive literature survey. Once
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developed it was pretested with a group of academic experts, who consisted of a professor from a
business school, an associate professor from an engineering faculty and a technical expert from a green
technology firm. The feedback provided was completely voluntary, as no incentive was offered for their
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contributions.
The final questionnaire was fine-tuned based on the input given by the panel of experts. The revised
questionnaire was then administered to respondents with a cover letter explaining the academic purpose
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of the study. The questionnaire consisted of two sections: section one covered questions on demographic
characteristics, while section two focused on the key predictors influencing the EVs usage intentions. The
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general and demographics data were collected using a combination of dichotomous (e.g. gender: Male
and Female) and multichotomous (e.g. academic qualification) characteristics. All measurements were
subjective assessments by the respondents using multiple items on a 5-point “Likert” scale that ranged
from 1=Strongly Disagree to 5=Strongly Agree. Where necessary, some of the questions were reverse
scored and then re-coded to maintain consistency. The intentions to use the EV factors are shown in
Figure 1 and Table 2.

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6. Methods
A descriptive analysis, reliability test, inter-correlation test and linear regression-stepwise test were used
to test the hypotheses and to achieve the objectives of this study. SPSS Version 21 was used to perform
the analysis. The preliminary analysis was conducted to ensure non-violation of the assumptions of
normality, homogeneity, linearity, multicollinearity and heteroscedasticity. The analysis of the data was
conducted in three stages. First, a number of descriptive and frequency statistics were reported (Table 1)
to observe the conditions of the data. Second, normality and reliability testing (Table 2) were conducted.

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The mean value, standard deviation, skewness and Kolmogorov-Smirnov tests were used to check the
normality of the data. Cronbach’s alpha and the inter-item correlation were used to calculate the reliability
statistics. Finally, the intercorrelation and multiple regressions were conducted to determine the strength

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and direction of the linear relationship between the independent variables and the dependent variable
(Tables 3 and 4). The linear regression-stepwise technique was carried out to test the hypotheses that
comprised the direct effects of social influences, performance attributes, financial benefits, environmental

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concerns, demographics, infrastructure readiness and government interventions on EVs usage intentions.

7. Results

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Table 1 illustrates the demographic attributes of the respondents who participated in this study. From the
1000 questionnaires distributed, 751 completed questionnaires were received and usable. The response
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rate was 75.1%. In terms of gender perspective, the majority of respondents were male (61%); females
made up 39% of the respondents. Most of the respondents were within the age group of 29-39 (45%); this
was followed by the age group 40-50 (31.2%). The majority of the respondents were well educated with
81% of them being university graduates and postgraduates. 75% of the total respondents were married.
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About 61% of the respondents did not have prior experience driving Electric or Hybrid vehicles. In terms
of household income, 63.5% of the respondents were earning above RM6,000 per month.
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Table 1: Demographic attributes of the respondents

Respondents’ profile Frequency Percentage (%)
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Gender Male 458 61.0

Female 293 39.0
Age Group 18-28 119 15.8
29-39 338 45.0
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40-50 234 31.2

> 50 60 8.0
Highest Academic Qualification Master / PhD 201 26.8
Bachelor Degree 406 54.1
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Others 144 19.1

Marital Status Married 566 75.4
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Single 178 23.7

Others 7 0.9
Driven Hybrid or Electric Vehicle? Yes 296 39.4
No 455 60.6
Household Monthly Income (RM) < 6,000 273 36.4
6,001 - 12,000 332 44.2
> 12,000 146 19.4
Current Locality Selangor 192 25.6
FT (K. Lumpur / Putrajaya) 408 54.3
Johor 59 7.9
Penang 79 10.5
Others 13 1.7

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Notes: Malaysia Total Population=30.267 millions; Male=50.7%; Female=49.3%

7.1 Reliability, Descriptive and Inter-correlation Analysis
For the descriptive analysis, the mean value was within 3.31–4.25, standard deviation within 0.64–0.85
and skewness within -0.609 to +0.165, suggesting good indicators of the factors investigated. Normality
was explored through the statistical technique called the Kolmogorov-Smirnov Test and also revealed a
good significant result (P-value > 0.05) for all the domains (Table 2). Reliability was assessed by
measuring the Cronbach’s α coefficient to check the internal consistency among the items. Ideally the

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Cronbach’s α values of a scale should be above 0.70 (Pallant, 2011). In the current study, the Cronbach’s
α for the overall scale of each factor was within 0.77-0.91, suggesting a very strong consistency among
the items for each factor (Table 2). We also measured the inter-item correlations, as the number of items

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in the scale was less than ten items. In order to suggest a strong correlation, Briggs & Cheek (1986)
proposed the range should be within 0.2-0.5. In the current study, the inter-item correlation was found to
be within 0.31-0.69, which suggested a strong relationship among the items (Table 2).

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Table 2: Descriptive statistics & reliability analysis
Variables No of Mean Standard Skewness Kolmogorov- Inter-Items Cronbach α
Items Deviation Smirnov Coefficients

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SI 4 3.31 0.83 -0.292 0.121 0.690 0.895
PA 5 3.46 0.64 +0.165 0.189 0.674 0.911
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FB 3 3.86 0.85 -0.310 0.130 0.615 0.830
EC 7 3.99 0.56 -0.344 0.105 0.308 0.751
DG 3 3.65 0.80 -0.350 0.133 0.606 0.817
IR 3 4.25 0.74 -0.798 0.175 0.546 0.773
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GI 6 4.23 0.73 -0.609 0.161 0.528 0.860

INT 5 3.57 0.66 -0.126 0.094 0.479 0.817
Notes: SI, PA, FB, EC, DG, IR, GI, INT as defined in Figure 1, page 7.
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The Pearson correlation coefficient was performed on the variables to determine the strength and
direction of the linear relationship between the independent variables and the dependent variable. A
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correlation of less than 0.20 is considered a slight correlation, 0.20-0.40 is considered low, 0.40-0.70 is a
moderate correlation, 0.70-0.90 is a high correlation and a correlation of more than 0.9 is considered very
highly correlated. Nevertheless, a high correlation between independent variables could result in a
multicollinearity problem (Lean et al., 2009). In this study, SI, PA, FB, EC, DM, IR and GI had a low to
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moderate correlation with the Intentions to Use (Table 3). The results of this study also show that there
was no multicollinearity problem, as all of the variables were within a low to moderate correlation.

Table 3: Correlation matrix

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Factors INT SI PA FB EC DG IR GI
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INT 1.000
SI 0.567 1.000
PA 0.520 0.523 1.000
FB 0.512 0.569 0.395 1.000
EC 0.369 0.301 0.234 0.330 1.000
DG 0.465 0.565 0.373 0.591 0.326 1.000
IR 0.245 0.354 0.215 0.456 0.305 0.448 1.000
GI 0.392 0.436 0.294 0.535 0.327 0.517 0.640 1.000
Notes: INT, SI, PA, FB, EC, DG, IR, GI, as defined in Figure 1, page 7; Correlation is significant at p-value<0.01.

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7.2 Relationship between EV Predictors and Usage Intentions

A multiple linear regression model with seven predictors was proposed. These predictors were coded as
SI, PA, FB, EC, DG, GI, and IR; they were explained and presented earlier (Section 2 and Figure 1). The
equation of the proposed multiple linear regression model is expressed as follows:
INT = β0 + β1SI + β2PA + β3FB + β4EC + β5DG + β6IR + β7GI + ε
where β0 = constant, SI, PA, FB, EC, DG, IR, GI = predictor variables and ε = error.

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Based on the stepwise method used, seven predictor domains were found to be significant in explaining
usage (p-value < 0.05 and 0.01). They were SI, PA, FB, EC, DG, IR and GI (Table 4).

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Table 4: Measurement model results

Unstandardized Coefficients Standardized Coefficient

Constructs SD Error t-value P-value VIF
β Beta

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Constant 0.600 0.158 - 3.799 0.000 -
SI 0.189 0.030 0.239 6.380 0.000 1.945
PA 0.262 0.033 0.255 7.968 0.000 1.418

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FB 0.137 0.029 0.176 4.685 0.000 1.962
EC 0.185 0.035 0.157 5.346 0.000 1.203
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DG 0.067 0.030 0.082 2.212 0.027 1.899
IR 0.115 0.032 0.128 3.558 0.000 1.787
GI 0.097 0.035 0.107 2.797 0.005 2.047
Notes: SI, PA, FB, EC, DG, IR, GI, as defined in Figure 1, page 7; R=0.68, R2=46.5%, Adjusted R2=46.0%, F=92.284,
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Significant=0.05

As shown in Table 4, the R2 of 0.46 implies that the seven-predictor domains explain about 46% of the
variance (variation) in usage intentions. This is a good and sound result in this research domain. As the
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model is a cross-section containing seven constructs, multicollinearity does not exist, as the value of the
VIF test is less than 5. The ANOVA table also revealed that the F-value (92.284) is large enough to be
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accepted statistically and the corresponding p-value is highly significant at 0.00, or lower than 0.05. Table
4 shows the largest beta coefficient (0.262) for the Performance Attributes (PA), which means this
domain makes the strongest unique contribution in explaining the EVs usage intentions, when the
variance explained by all other predictor domains in the model is controlled for. It suggests that a one-
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standard deviation increase in Performance Attributes (PA) is followed by a 0.262 standard deviation
increase in usage, implying that any increase in PA would lead to an increase in EV usage intentions in
Malaysia. The ranking of the seven remaining domains are as follows: SI, EC, FB, IR, GI and DG. All the
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seven predictors support the hypotheses (Table 5).

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Table 5: Results of the hypothesis testing

P-
Hypotheses Path Standardised Path Coefficients Result
value
SI → INT 0.239 0.000* Supported
PA → INT 0.255 0.000* Supported
FB → INT 0.176 0.000* Supported
EC → INT 0.157 0.000* Supported
DG → INT 0.082 0.027* Supported
IR → INT 0.128 0.000* Supported
GI → INT 0.107 0.005* Supported
Notes: SI, PA, FB, EC, DG, IR, GI, INT as defined in Figure 1, page 7; *Statistically significant at the 5% level (p-value <0.05).

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The findings in this study on the factors influencing usage intentions were found to support the previous
literature. Although not all of the past studies were conducted with the same research contexts, the
empirical analysis has shown that these predictors are also relevant and significant in the EVs domain.
The significant predictors that supported and are in-line with the previous research findings are shown in
Table 6.

Table 6: Predictors that supported the previous findings

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Predictor Previous Studies
SI Daziano & Chiew, 2012; Lee, 2008; Mau et al., 2008

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PA Cheron & Zins, 1997; Ozaki & Sevastyanova, 2011; Zhang et al., 2013
FB Heffner et al., 2007; Mourato et al., 2004; Zhang et al., 2013
EC Bang et al., 2000; Laroche et al., 2001

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DG Bekhet & Al-allak, 2014; Potoglou & Kanaroglou, 2007
IR Garling & Thogersen, 2001; Skerlos & Winebrake, 2010; Sperling & Kitamura, 1986
GI Ahman, 2006; Brand et al., 2013; Chandra et al., 2010; Gallagher & Muehlegger, 2011; Rogan et al.,

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2011; Sinnappan & Rahman, 2011
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Notes: SI, PA, FB, EC, DG, IR, GI, as defined in Figure 1, page 7

8. Discussion & Conclusions

This paper will make a substantial contribution to the growing body of literature on technology diffusion
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and validating a comprehensive model for EVs adoption, taking into account seven key predictors that
affect usage intentions. By surveying Malaysian EVs usage intentions, this research was able to gather
first hand data and present a realistic result. This study sheds some light into how the automotive
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marketers could formulate strategies to introduce the sales of EVs among Malaysian consumers in terms
of Social Influences, Performance Attributes, Financial Benefits, Environmental Concerns,
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Demographics, Infrastructure Readiness and Government Interventions, surfacing as the key predictors of
usage intentions. Such findings enhance our understanding on social acceptance and consumer
preferences towards new alternative vehicle usage and provide a starting point for the automotive players
to design or redesign their products. We may acknowledge that by using this survey’s results, automotive
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players can be guided and motivated to use the right strategies to encourage more Malaysians to switch to
EVs in the coming future.
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This research also reveals seven significant predictors of EVs usage intentions in Malaysia. Policy-makers
should address the appropriate policies and interventions to encourage the growth of EVs in Malaysia as
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part of the strategy to increase energy efficiency, reduce emissions and reduce the reliance on fossil fuels
within the transportation sector. Public awareness and education on the issue of climate change and
energy efficiency will definitely help to raise the consumer knowledge level which will, in turn, impact
the level of acceptance of green vehicles.
The existing Green Technology Policy, 2009, and National Automotive Policy, 2014, should be referred
as the backbone policies to allow this segment to accelerate and transform the automotive industry to be
one of the vital contributors for the national economy. Government agencies such as the Ministry of
Energy, Green Technology and Water (MEGTW) and Malaysia Green Technology Corporation (MGTC)
and various automotives players should develop a better awareness of the benefits of EVs usage as part of

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green technology initiatives to encourage a higher rate adoption. Organizing seminars and road shows to
showcase the benefits of EVs would allow citizens to evaluate the advantage of switching to EVs. More
pilot and demonstration projects, such as the installation of charging stations that provides free charging,
will certainly help to boost the share of EVs. At the same time, the relevant agencies should formulate
incentives to provide good financial benefits to the user who chooses to switch over to EVs.
The rationale of this research is to determine the key predictors influencing the EVs usage intentions in
Malaysia. This study contributes to, and broadens, our understanding of EVs as a green technology

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application in the automotive sector by examining the rationale for this new technological acceptance.
From a managerial perspective, the findings provide support for good investment decisions, as well as for
decisions relating to the enhancement of green technology in the country, which addresses and takes into

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consideration the publics’ concerns and needs. This research was performed under a theoretical
framework that was developed based on the previous literature findings. The multiple regression analysis
shows that Social Influences, Performance Attributes, Financial Benefits, Environmental Concerns,

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Demographics, Infrastructure Readiness and Government Interventions are very important elements of
EVs usage intentions. With regards to the Malaysian government initiative towards the use EVs, an
understanding of the predictors that influence usage intentions is indeed invaluable.

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This study presents preliminary research that explains 46% of the variance in EVs usage intentions in
Malaysia. It also provides a basis for other EVs acceptance research and encourages the further
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exploration and integration of additional predictors. Future research should focus on a larger cross-section
and diversified samples to substantiate the results of the current research. Thus, it will be necessary to test
the study’s predictions in cross-cultural studies. There is also a possibility to investigate EVs acceptance
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using other existing or modified diffusion models. The outcome may be used as a baseline for further
research to validate and develop a better model to explain intentions to use EVs in Malaysia. Future
enquiries could also inspect the causal relationships between factors affecting EV usage by employing a
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structural equation modelling technique. In addition, future research also needs to examine the impact of
EV usage on electricity generation and the public society in Malaysia as a whole.
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Acknowledgement
The authors would like to acknowledge the Institute of Energy and Policy Research (IEPRe), UNITEN
for awarding the scholarship under the Energy Economics Chair endowed by Malaysian Electricity
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Supply Industries Trust Account (MESITA) for this research. Sincere appreciation is due to anonymous
reviewers for valuable comments to improve this article.
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