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Gasoline savings from clean vehicle adoption

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  • Sheldon, Tamara L.
  • Dua, Rubal

Abstract

Conventional counterfactuals used in literature may underestimate fuel savings from clean vehicle adoption, thus overestimating the costs of securing associated environmental benefits. Using a large-scale nationally representative sample of U.S. new car buyers, we propose a choice model-based counterfactual approach to predict what consumers would purchase if clean vehicles were unavailable. We find that gasoline consumption under a no clean vehicle scenario increases by 1.7%, compared with 1.1% based on a conventional counterfactual. The conventional counterfactual overestimates the cost of gasoline savings from clean vehicle adoption incentives by $1.16 (27%) per gallon compared with the choice model-based counterfactual.

Suggested Citation

  • Sheldon, Tamara L. & Dua, Rubal, 2018. "Gasoline savings from clean vehicle adoption," Energy Policy, Elsevier, vol. 120(C), pages 418-424.
    • Handle: RePEc:eee:enepol:v:120:y:2018:i:c:p:418-424
    DOI: 10.1016/j.enpol.2018.05.057
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    Cited by:

    1. Adekunle Mofolasayo, 2023. "Assessing and Managing the Direct and Indirect Emissions from Electric and Fossil-Powered Vehicles," Sustainability, MDPI, vol. 15(2), pages 1-33, January.
    2. Bjertnæs, Geir H.M., 2023. "Taxation of fuel and vehicles when emissions are constrained," Energy Economics, Elsevier, vol. 128(C).
    3. Sheldon, Tamara L. & Dua, Rubal, 2020. "Effectiveness of China's plug-in electric vehicle subsidy," Energy Economics, Elsevier, vol. 88(C).
    4. Sheldon, Tamara L. & Dua, Rubal, 2019. "Measuring the cost-effectiveness of electric vehicle subsidies," Energy Economics, Elsevier, vol. 84(C).
    5. Sheldon, Tamara L. & Dua, Rubal & Alharbi, Omar Abdullah, 2023. "Electric vehicle subsidies: Time to accelerate or pump the brakes?," Energy Economics, Elsevier, vol. 120(C).
    6. Cruz-Jesus, Frederico & Figueira-Alves, Hugo & Tam, Carlos & Pinto, Diego Costa & Oliveira, Tiago & Venkatesh, Viswanath, 2023. "Pragmatic and idealistic reasons: What drives electric vehicle drivers' satisfaction and continuance intention?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    7. Sheldon, Tamara L. & Dua, Rubal, 2021. "How responsive is Saudi new vehicle fleet fuel economy to fuel-and vehicle-price policy levers?," Energy Economics, Elsevier, vol. 97(C).

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    More about this item

    Keywords

    Q48; R40; Fuel efficiency; Clean vehicles; Air pollution; Transportation policy;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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