Consumer Preferences for Electric Vehicles in Surabaya: Analysis Using a Behavioral Economics Approach

Abstract

The transition to electric vehicles (EVs) is a global strategic agenda to support sustainable development and reduce carbon emissions. As a metropolitan city and economic center in Indonesia, Surabaya has significant potential for adopting this technology. However, EV penetration remains low, raising questions about the factors influencing consumer preferences. This study aims to analyze the economic and behavioral determinants that shape Surabaya consumers' preferences for electric vehicles using a behavioral economics approach. The research method is quantitative, using a survey of 200 motorized vehicle users in Surabaya. Data analysis was conducted using logistic regression to examine the influence of price, operational costs, charging infrastructure, environmental awareness, social status, and risk perception on consumer decisions. The results show that economic factors, particularly price and availability of charging infrastructure, significantly influence interest in purchasing electric vehicles. However, a more prominent finding is the dominance of behavioral factors. Behavioral biases, such as loss aversion (fear of losses related to battery price and resale value), and the influence of social status proved stronger in shaping preferences than purely rational considerations. These findings emphasize that the strategy for developing the electric vehicle market in Surabaya cannot rely solely on economic incentives but must also consider the psychological and social aspects of the community. Academically, this study expands the literature on electric vehicle adoption from a behavioral economics perspective in developing countries, while providing practical recommendations for local governments and the automotive industry on pricing policy design, infrastructure provision, and public communication strategies to accelerate the transition to environmentally friendly vehicles.