Technical Paper
Alternative Fuel Vehicles: Should the Federal Government Bridge the Economic Gap?
1998-02-01
981176
The future of Alternative Fuel Vehicles (AFVs) is uncertain because consumer demand for them has not been established. AFVs are environmentally friendly and have the potential to provide short, mid, and long term solutions to the United States' problem of dependence on foreign sources of oil. At this time, however, there is little economic incentive to encourage consumers to purchase AFVs. The federal government has taken the lead in establishing a market for AFVs by mandating their purchase across federal and state vehicle fleets. In addition, the government has offered incentives to automobile manufacturers to encourage the production of AFVs. The government has also established consumer awareness programs which are educating the public about the benefits of AFVs. It is basic government research, however, which is the key to maximizing the long term potential of AFVs.