Many Asian cities are experiencing rapid growth in the ownership of personal gasolinepowered
motorcycles, a shift away from relatively low-emitting modes of transportation
that is contributing to deteriorated air quality. Electric two-wheelers have the potential
for significant air pollution reductions as an alternative to gasoline-powered motorcycles;
however, they have yet to penetrate many Asian markets. While previous research has
examined the adoption of cleaner alternatives to gasoline-powered automobiles (e.g.,
hybrid electric cars), similar work on motorcycle alternatives is lacking. This study uses
a stated preference survey of households in Hanoi, Vietnam to analyze adoption of electric
two-wheelers, while focusing on the effects of economic incentives (e.g., differential sales
taxes and fuel prices) and technological improvements (e.g., more efficient batteries). A
choice model is estimated and market shares are calculated for scenarios involving different
levels of electric two-wheeler technology, gasoline prices, and sales tax rates. Results
indicate that technological improvements and economic incentives, particularly sales
taxes, have significant effects on adoption.