Drivers of Transportation: Measuring the Impact of Policy on Adoption of Alternative Fuel Vehicles

About the Project:

Improving road transport fuel efficiency and transitioning to low-emission vehicles have become key elements of policy development in several countries. How will regulatory instruments (policies, incentives, rebates, perks) impact the consumer behavior of new vehicle buyers (vehicle choices, acceptance of alternative fuel vehicle technologies, stated and revealed preferences)? A policy designer must understand how the policy can be aligned with consumer preferences in order to achieve the societal goals but with minimal societal burden, and to effectively increase the adoption rates of alternative fuel vehicles.

Key Points:

• KAPSARC’s automotive transportation research concentrates on AFV adoption today, but acceptance of zero emission and fuel efficient vehicles is a long -term challenge facing the US and other markets.
• Regulatory strategies to reduce emissions call for the adoption of a range of new efficiency technologies, but reducing greenhouse gas emissions from transportation seems to be uniquely difficult.
• As consumers of mobility upgrade from two-wheel to four-wheel modes of transport, GHG intensity is actually increasing in the transportation sector unlike other sectors of the global economy.
• The cost of driving is decreasing due to the very vehicle efficiency demanded by regulators. As GDP grows, consumers shift to faster modes of travel such as vehicles, and vehicle ownership is increasing in most non-OECD countries.
• GHG intensity is increasing in transportation, unlike other global economic sectors.