Natural gas vehicles stall on way to market
- Congressional Research Service, Washington, DC (United States)
The outlook for increased use of natural gas for fueling autos depends primarily on comparative fuel prices and comparative vehicle prices, according to David E. Gushee, a senior fellow in environmental policy at the Library of Congress in Washington, D.C. Compressed natural gas may be a more efficient fuel than gasoline, but costs of fuel distribution and engine design can add significantly to its total price. Currently, natural gas is less expensive than gasoline at the retail level, but this price advantage depends on government and industry subsidies. For natural gas to stay competitive in the future, these subsidies likely will have to continue, says Gushee. The pump price of natural gas will have to remain low if natural gas-powered vehicles are to succeed in the market place, because such vehicles currently cost about $2,500 to $5,000 more than a comparable gasoline-powered car. Gushee says that even with mass production, the projected price difference will be about $800 per car. The challenges facing compressed natural gas are daunting, especially considering that even in nations where natural gas receives significant tax advantages, its penetration has not exceeded 15 percent.
- OSTI ID:
- 75490
- Journal Information:
- Forum for Applied Research and Public Policy, Vol. 10, Issue 2; Other Information: PBD: Sum 1995
- Country of Publication:
- United States
- Language:
- English
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