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Natural gas vehicles are being developed because of increasing concerns about energy dependence, air quality and emissions, and, more recently, climate change. The major advantage of natural gas vehicles is their lower fuel cost. Several economic and technical factors such as limited range and availability of relevant infrastructure prevent widespread adoption of natural gas vehicles. A model for the financial analysis of the possibility of compressed natural gas (CNG) vehicles being competitive with gasoline-powered vehicles is offered. The model evaluates the extent to which commuters find adoption of CNG vehicles to be economically viable in the United States. The results indicate that the percentage of commuters who would adopt CNG vehicles is small, even if fueling infrastructure were fully developed and CNG vehicles were widely available for purchase. A larger number of vehicle miles traveled and increased gasoline prices encourage commuters to adopt CNG vehicles, while higher fuel economy and purchase price differentials result in lower adoption rates. In some cases, which vary in accordance with the values of the model’s parameters, commuters purchase a CNG vehicle as their second car and keep a gasoline-powered car as their first.

Vehicle fuel economy improvement has proved to be one of the most effective policies in controlling gasoline demand and greenhouse gas emissions in the transportation sector. However, such improvement also results in the decrease of fuel tax revenue, the main funding source for building and maintaining the U.S. transportation infrastructure. Conversely, fuel efficiency improvement reduces the marginal and average cost of travel, thus encouraging drivers to drive more, and that in turn increases gasoline consumption. The objective of this study was to estimate the potential loss of fuel tax revenue and greenhouse gas emissions, dependents of fuel consumption, that resulted from the fuel efficiency improvement. Accordingly, fuel consumption was modeled as a system of equations consisting of vehicle miles traveled and fuel efficiency (in mpg) as two explanatory variables. The model was estimated by the three-stage least squares method, with annual time-series data for Washington State over the period from 1976 to 2011. According to the results, Washington State will have a $106 million loss in revenue and an 8.7% reduction in emissions of carbon dioxide (CO2) in 2031.

Increasing the usage of electric vehicles has been proposed as a policy to decrease aggregate fuel consumption and greenhouse gas (GHG) emissions in an effort to mitigate the causes of climate change. In order to increase the attraction of electric vehicles for consumers, governments have employed a number of incentives. In this study, the relationship between shares of electric vehicle and the presence of government incentives as well as other influential socioeconomic factors were examined. The methodology of this study is based on a crosssectional/time-series (panel) analysis. The developed model is an aggregated binomial logit share model that estimates the modal split between EV and conventional vehicles for different U.S. states from 2003 to 2011. The model was estimated using different panel data methods and the results were compared. The results demonstrated that electricity prices were negatively associated with EV use while, urban roads and government incentives were positively correlated with states' electric vehicle market share. Sensitivity analysis suggested that of these factors, electricity price affects electric vehicle adoption rate the most. According to the sensitivity analysis of electric vehicle adoption rate, state of Vermont has the most sensitivity with respect to electricity price and New Jersey is the most sensitive state with respect to urban roads and incentives. Moreover, the time trend model analysis found that the electric vehicle adoption has been increasing over time, which is consistent with diffusion of new technology theory.

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