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The target market for methanol fuel

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  • Sperling, Daniel
  • Setiawan, Winardi
  • Hungerford, David

Abstract

A survey of vehicle owners was conducted in New York State and California to explore the potential target market for methanol in the household sector. Data were colleted on revealed and reported premium gasoline purchase behavior and willingness to pay for cleaner fuels and more power. We found that drivers are willing to pay slightly more for cleaner fuels than for more power, although we do not interpret this to mean that when confronted at a fuel pump with two choices, one fuel cleaner but more expensive than the other, a motorist would select the more expensive cleaner-burning fuel. We found that income is not an important variable in predicting the purchase of cleaner fuels and that female drivers and Californians are willing to spend more on cleaner fuels than are male drivers and New Yorkers, respectively. Current premium gasoline users are willing to pay more for additional power and cleaner fuels than are regular gasoline users, indicating that premium gasoline users are likely to be initial buyers of methanol fuel and methanol-powered vehicles.

Suggested Citation

  • Sperling, Daniel & Setiawan, Winardi & Hungerford, David, 1995. "The target market for methanol fuel," Transportation Research Part A: Policy and Practice, Elsevier, vol. 29(1), pages 33-45, January.
  • Handle: RePEc:eee:transa:v:29:y:1995:i:1:p:33-45
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    References listed on IDEAS

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    1. W. Michael Hanemann, 1984. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 332-341.
    2. Greene, David L., 1985. "Estimating daily vehicle usage distributions and the implications for limited-range vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 19(4), pages 347-358, August.
    3. Calfee, John E., 1985. "Estimating the demand for electric automobiles using fully disaggregated probabilistic choice analysis," Transportation Research Part B: Methodological, Elsevier, vol. 19(4), pages 287-301, August.
    4. David L. Greene, 1990. "Fuel Choice For Multi-Fuel Vehicles," Contemporary Economic Policy, Western Economic Association International, vol. 8(4), pages 118-137, October.
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    Cited by:

    1. Tzeng, Gwo-Hshiung & Lin, Cheng-Wei & Opricovic, Serafim, 2005. "Multi-criteria analysis of alternative-fuel buses for public transportation," Energy Policy, Elsevier, vol. 33(11), pages 1373-1383, July.

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