Policy Insight, Volume 2, Issue 2, April 2008
New Engines and Fuels for Cars and Light Trucks
Rising oil prices and concerns about energy security and climate change are pressuring automakers to produce vehicles with better fuel economy and reduced greenhouse-gas emissions. This Policy Insight discusses four innovations to fuel and engine technology that automakers will be developing over the next decade: gasoline-electric hybrid technology, advanced diesel technology, vehicles powered by a blend of ethanol and gasoline, and improvements to the traditional gasoline engine. Keefe, Griffin, and Graham highlight the advantages and disadvantages of each, drawing on a benefit-cost analysis in which they calculate the value of the three alternative technologies from a societal perspective, taking into account technology costs, fuel savings, performance benefits, pollution estimates, reductions in oil use, the cost of greenhouse-gas emissions, and other factors. They conclude that advanced diesels and gasoline-electric hybrids have a promising future but that policymakers appear to be favoring ethanol-fueled vehicles through a variety of regulations and tax subsidies.
- Copyright: RAND Corporation
- Availability: Web-Only
- Pages: 4
- Document Number: CP-521 (4/08)
- Year: 2008
- Series: Corporate Publications
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