The Effects of Market Size and Fuel Costs on Fuel-Saving Technology Adoption in Passenger Vehicles

In this discussion paper the authors explore the relationship between vehicle sales/market size and fuel costs on fuel-saving technology adoption by manufacturers of gasoline and diesel passenger vehicles. Analyzing vehicle characteristics, sales, consumer preferences and demographics data from 1997 to 2013, it is determined that market size has a significant effect on technology adoption with a 10% increase in market size corresponding to a .2% raise in vehicle efficiency. In addition, the authors find that fuel costs have a positive impact on technology adoption and strongly affect market size. Implications of these relationships are explored including the effects of taxes, feebates, fuel economy standards, fuel price variation, demographic changes, and sales of sport utility vehicles and crossovers.

• Record URL:
  • http://www.rff.org/files/document/file/RFF-DP-16-26-REV.pdf
• 
• Supplemental Notes:
  • June 2016; revised December 2016; title page date November 2016.
• Corporate Authors:

  Resources for the Future

  Washington, DC  United States 
• Authors:
  • Klier, Thomas
  • Linn, Joshua
  • Zhou, Yichen Christy
• Publication Date: 2016-12

Language

• English

Media Info

• Media Type: Digital/other
• Edition: Discussion Paper
• Features: Appendices; Figures; References; Tables;
• Pagination: 57p

Subject/Index Terms

• TRT Terms: Consumer preferences; Costs; Demographics; Fuel conservation; Fuels; Market assessment; Market share; Motor vehicle industry; Passenger vehicles; Policy; Sales; Technological innovations
• Geographic Terms: United States
• Subject Areas: Economics; Energy; Highways; Vehicles and Equipment;

Filing Info

• Accession Number: 01638995
• Record Type: Publication
• Report/Paper Numbers: RFF DP 16-26-REV
• Files: TRIS
• Created Date: Jun 27 2017 4:08PM