The Car and Truck Fleet and Leasing Management Magazine

Alternate Fuel Adoption Will Be Slow, According to Study

June 5, 2007

BOSTON – An MIT study has concluded that competitively priced alternative-fuel vehicles may not swiftly capture a large share of the auto market even if it’s three-times more fuel-efficient than a traditional car, according to the Boston Globe.

Consumers won’t consider buying alternative-fuel vehicles until a critical mass of them is on the road, the study suggested, and energy companies won’t build alternative-fuel filling stations until they’re certain about future demand. MIT researchers studying market and consumer behavior at the Sloan School of Management call the situation a Catch 22, according to the MIT News Office.

However, the report also said that if policy incentives to switch to alternative-fuel vehicles are kept in place long enough, adoption will reach a level at which the market will begin to grow on its own.

Twitter Facebook Google+


Please note that comments may be moderated. 
Leave this field empty:

Fleet Incentives

Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.

Sponsored by

Jerome "Jerry" Geckle was a former president of PHH Arval (then Peterson, Howell & Heather, Inc.) and chairman of the board of PHH Corporation from 1980-1989.

Read more

Up Next

More From The World's Largest Fleet Publisher