Vehicle Emissions Reduction

Factors influencing large-scale use of alternative fuels

The introduction of alternative fuels requires changes in distribution, marketing and end-use systems. Irrespective of the economics, inadequate supply of fuel or unreliable distribution systems could adversely affect consumer acceptance of alternative transportation fuels.

Experience with the use of ethanol in Brazil and CNG in New Zealand and elsewhere suggests that the main factors influencing large-scale introduction of CNG and alcohol fuels are price competitiveness, availability and cost of feedstock (e.g., sugarcane for ethanol, or natural gas for CNG), fuel safety and quality standards, reliable system of distribution, and technical quality of vehicles (driveability, durability, safety).

The Brazil experience with ethanol and the New Zealand experience with CNG clearly show that it is possible to develop a large market for alternative fuels within a reasonable time frame if the financial incentives are favorable and efforts are made to overcome uncertainty on part of industry and consumers. In both instances, substantial subsidies had to be offered to private motorists to persuade them to convert to alternative fuels.