The Impact of Consumer Sentiment on Sales of New Energy Vehicles: Evidence from Textual Analysis

Abstract

The advancement of new energy vehicles (NEVs) represents a strategic initiative to combatting climate change, mitigating the energy crisis, and fostering green growth. Using provincial panel data from China between 2017 and 2022, in this study, we applied machine learning techniques for sentiment analysis of textual reviews, used word frequency statistics to explore consumers’ views on the attributes of new energy vehicles, and constructed a consumer sentiment index to study the impact of consumer sentiment on NEV sales. Considering the dependence of NEVs on a charging station, this paper explores the nonlinear impact of the popularity of charging stations on the relationship between consumer sentiment and sales of new energy vehicles. The findings indicate the potential for enhancement in the areas of space, interior design, and comfort of NEVs. Additionally, consumer sentiment was found to facilitate the diffusion of NEVs, with this effect being heterogeneous across different educational backgrounds, income levels, and ages. Furthermore, the availability of per capita public charging stations was shown to significantly reduce range anxiety and encourage consumer purchasing behavior.