Willingness to pay extra for electric cars with sustainably produced batteries

This study investigates the psychological factors influencing the willingness to pay extra for an electric car equipped with a battery certified as sustainably produced after watching a short video introducing the Sustainable Development Goals (SDGs). Based on a questionnaire and a thought experiment carried out in Norway, we explore the effect of sustainability labels covering general sustainability, environmental impact, social responsibility, and carbon emissions on consumers' willingness to pay extra. We find that 31.9 % of the participants are willing to pay more for an electric car with a more sustainably produced battery, with a median of 10 %, but no statistically significant difference across different sustainability labels. Our model demonstrates a good fit, shedding light on the psychological factors driving consumers' intentions to invest in electric cars with sustainably produced batteries. Policy implications on a systemic level, such as increased transparency in the value chain, are discussed from these insights.