Survey Evidence on the Importance of Fuel Availability to the Choice of Alternative Fuels and Vehicles

  • David L. Greene


Limited fuel availability is a critical factor in the marketability of new fuels. A survey of us households is used to estimate the value of fuel availability and its influence on choice of fuel for a fuel-flexible vehicle and the choice of a dedicated-fuel engine for a vehicle. The marginal value of availability decreases as the percent of stations offering a new fuel increases. For fuel-flexible vehicles the cost of lack of availability decreases from us $0.35/gallon at 1% to US $0.02/gallon when 50% of stations offer the fuel.