When discussing the future of the automotive industry, there is probably just one thing politicians, corporations, and customers agree on: That there is a need to develop and establish alternative fuel vehicles (APV) in the future. There are multiple reasons to reject the conventional, petroleum-based fuels. While nobody can surely say when peak oil is reached, we cannot rely on oil forever. This and the dangerous dependency on a few oil-exporting rogue states, coerce us to look for alternatives for fuelling cars and other vehicles. The motivation for consumers to buy an alternative fuel vehicle can be economic (e. g. rising petrol prices) or ideological (e. g. energy sustainability , pollution reduction, climate change ) (Byrne & Polonsky, 2012, p. 1535). This literature review will outline present findings regarding which alternative fuels possess the most potential and which factors drive consumer adoption of AFVs in general.
Table of Contents
1. Introduction
2. Conventional Fuels at a Glance
2.1 Petroleum Spirit (Petrol/Gasoline)
2.2 Diesel
3. Particular AFV Potentials and Progression of Consumer Adoption
3.1 LPG and Natural Gas
3.1.1 Liquefied petroleum gas (LPG).
3.1.2 Compressed natural gas (CNG).
3.2 Biofuels
3.3 Electric Vehicles
3.3.1 Electricity from batteries.
3.3.2 Electricity from hydrogen fuel cells.
3.4 Other Fuels and Technologies
4. General Factors of Consumer Adoption
4.1 Cost Effectiveness
4.2 Infrastructure
4.3 Car Attributes
4.4 Impression
4.5 Policy
4.6 Ideology
4.7 Demography
5. Literature Coverage
Objectives & Core Topics
This paper aims to provide a comprehensive literature review on the factors influencing consumer adoption of alternative fuel vehicles (AFVs). It investigates which alternative fuels show the most potential and identifies the primary socio-economic and psychological drivers that determine whether consumers choose to adopt these technologies over traditional, petroleum-based vehicles.
- Potential and adoption barriers of different AFV types (LPG, CNG, Biofuels, Electric, Hydrogen).
- Economic factors, specifically cost-effectiveness and the impact of government financial incentives.
- The influence of infrastructure availability and the "chicken-and-egg" problem.
- Psychological and social determinants, including environmental ideology, vehicle image, and consumer demographics.
Excerpt from the Book
3. Particular AFV Potentials and Progression of Consumer Adoption
Consumer preferences for fuel types are very heterogeneous (Brownstone, Bunch, & Train, 2000, p. 377). The first impediment to consumer adoption is the high purchasing price, as AFVs are not affordable for many people (Mechnich, 2012a). Moreover, Zhang, Gensler, and Garcia (2011) notice a “prisoner’s dilemma” (p. 154), as no manufacturer is willing to be the first to commit to a new technology; the same network problem applies on refuelling and maintenance infrastructure. In general, eco-innovations have long start-up periods (Golder & Tellis, 2004) and diffusion discontinuities (Christensen, 1997). In the short-term, hybrid vehicles are more likely to be adopted by consumers than completely disruptive innovations, because they require less changes in infrastructure and consumer behaviour, and can thus serve as a bridge technology (Byrne & Polonsky, 2012; Dagsvike, Wetterwald, Wennemo, & Aaberge, 2002; Mokhtarian & Cao, 2003).
Summary of Chapters
1. Introduction: Outlines the necessity for alternative fuel vehicles due to environmental and supply concerns and establishes the scope of the literature review.
2. Conventional Fuels at a Glance: Examines the dominance, performance, and market trends of petroleum-based fuels like petrol and diesel.
3. Particular AFV Potentials and Progression of Consumer Adoption: Analyzes specific alternative fuel technologies including LPG, CNG, biofuels, electric batteries, and hydrogen fuel cells, noting their respective market hurdles.
4. General Factors of Consumer Adoption: Synthesizes the critical drivers for AFV market uptake, ranging from financial cost-effectiveness and infrastructure to psychological factors like ideology and vehicle perception.
5. Literature Coverage: Identifies gaps in existing research, specifically the lack of interdependency studies between stakeholders and the need for further investigation into the relative effectiveness of different policy measures.
Keywords
Alternative Fuel Vehicles, AFV, Consumer Adoption, Sustainable Transportation, Electric Vehicles, Hydrogen Fuel Cells, Biofuels, Market Incentives, Infrastructure, Environmental Ideology, Fuel Efficiency, Consumer Behaviour, Automotive Industry, Policy Impact, Consumer Preferences
Frequently Asked Questions
What is the fundamental focus of this research?
The work focuses on identifying the key factors that influence consumer decisions regarding the adoption of alternative fuel vehicles (AFVs) as opposed to traditional petroleum-fueled cars.
Which central thematic areas are explored?
The research covers technical, economic, and social themes, including the performance of various alternative fuel technologies, the importance of infrastructure, policy effectiveness, and consumer demographics.
What is the primary objective of this study?
The primary goal is to provide a systematic literature review that outlines which alternative fuels have the most market potential and what barriers exist to consumer adoption.
Which scientific methodology is employed?
The paper utilizes a comprehensive literature review approach, synthesizing existing academic studies, government reports, and market research to analyze AFV adoption patterns.
What topics are covered in the main body?
The main body evaluates specific fuel types like LPG, CNG, electric, and hydrogen, and details the factors affecting adoption such as cost-effectiveness, infrastructure, car attributes, policy, ideology, and demography.
Which keywords best characterize this work?
Key terms include Alternative Fuel Vehicles, Consumer Adoption, Sustainable Transportation, Infrastructure, Market Incentives, and Environmental Ideology.
What is the significance of the "chicken-and-egg" problem for AFVs?
It refers to the infrastructure barrier: consumers are reluctant to buy AFVs without a dense network of fueling/charging stations, while suppliers are reluctant to build that infrastructure until there is a critical mass of vehicles on the road.
How does vehicle image affect consumer adoption?
Research suggests that beyond mere functionality, a vehicle's "green" image can be a significant psychological driver for consumers, especially for early adopters of new technologies.
Does the paper conclude that electric vehicles are currently the best solution?
The text suggests that while electric vehicles are a major focus for future policy, they currently face significant challenges related to range, cost, and infrastructure, often rendering them more viable as second vehicles rather than primary ones.
- Quote paper
- Florentin Rack (Author), 2012, Adoption of Alternative Fuel Vehicles - A Consumer Perspective, Munich, GRIN Verlag, https://www.grin.com/document/203479
