Fuelling Behaviour Change
The effectiveness of fuel taxation towards reducing gasoline usage in vehicles has been a subject of debate. Using data from Sweden, which has one of the highest gasoline taxes in the world, research now demonstrates a potential consumer preference for gasoline even at price parity with ethanol.
"Recent developments in flex-fuel vehicle markets have expanded selections for consumers, as many multi-fuel vehicles and fully electric vehicles have become widely available1. The popularity of low-emission fuels depends on consumer choices, such as foregoing a conventional gasoline vehicle for a flex-fuel vehicle, and how much the alternative fuel mode is used after the vehicle is purchased. Writing in Nature Energy, Cristian Huse from Stockholm School of Economics highlights the importance of consumer fuel switching behaviour towards the success of policies intended to reduce emissions in Sweden2. The study finds that even if a gasoline tax raises the prices of gasoline to be at parity with ethanol, 71 per cent of Swedish drivers will still prefer gasoline. Model results suggest that gasoline prices may have to be raised as high as US$11.88 per gallon to significantly change that preference." Click "View Journal Article," above, to read on.
