UNDERSTANDING STATUS QUO BIAS IN ELECTRIC VEHICLE ADOPTION: A SYSTEMATIC REVIEW THROUGH THE LENS OF PROSPECT THEORY

Abstract

The transition to electric vehicle (EV) mobility is widely recognised as a critical step toward achieving global decarbonisation goals. Regardless of technological advancements and supportive policy frameworks, consumer adoption of EVs remains limited. This systematic literature review investigates the psychological barrier of status quo bias (SQB) as a central factor in consumer resistance to EV adoption, using Prospect Theory as the theoretical foundation. A total of 37 peer-reviewed journal articles were selected through a structured screening process based on predetermined inclusion criteria, focusing on behavioural constructs, automobile-related decision-making, and the clear application of Prospect Theory. Descriptive and thematic analyses revealed that SQB is marked through behavioural motions, default preferences, and loss aversion, all of which are amplified by perception of risk reference and point dependence. The review also identifies key psychological and contextual factors that reinforce SQB, including bounded rationality and uncertainty aversion. While Prospect Theory offers a robust explanatory framework, significant gaps remain in the literature, including the limited application of alternative behavioural theories, the scarcity of cross-cultural research, and the underutilization of experimental methods. The findings underscore the importance of integrating behavioural insights into EV policy design, alongside technological and infrastructural improvements. This review contributes to a deeper understanding of consumer behaviour in sustainable mobility transitions and highlights the need for behaviourally informed strategies to overcome resistance to EV adoption.