114
Integrating Sector-Wide Reforms for Mitigation
Box 3.5 Information and Consumer Vehicle Choice Reasons for vehicle choice are complex because they are affected by economic, social, cultural, and psychological factors. Car safety and fuel economy are important determinants (Dreyfus and Viscusi 1995), but people tend to discount future fuel prices and buy cars based on size, speed, and appearance rather than fuel economy (World Bank 2010a). It has been found that car ownership and use are closely related to “symbolic” and “convenience” motives (Sohn and Yun 2009) and may be affected by neighbors’ behavior. Thus, the more people use new vehicle technologies, the more others will follow (Mau and others 2008; Axsen and others 2009). In addition to financial incentives, people need information Coad and others (2009). People are not always familiar with low-carbon vehicle options (figure B3.5.1; Anable and others 2006, prepared for the U.K. Department for Transport). To raise public awareness, Singapore launched the Climate Change Awareness Program in 2006, showing the public simple ways to save energy and money and reduce emissions. The Philippines has implemented similar programs (Prasad and others 2009). Eco-labeling can significantly affect consumer vehicle choice, although psychological factors and prior choices are also important. In 2005 the United Kingdom introduced a new green car label in connection with the Vehicle Excise Duty rating (Anable and others 2006). The U.S. Environmental Protection Agency also provides two emission ratings: the Air Pollution Score and the Greenhouse Gas Score (Teisl and others 2008). Nonmonetary incentives can help. For instance, people in California—the largest hybrid car market in the United States—buy hybrid cars so that they can use high-occupancy vehicle (HOV) lanes when driving alone (Sangkapichai and Saphores 2009). Californians are twice as likely to purchase a hybrid car as are New Yorkers (table B3.5.1). While incentives clearly work, however, traffic conditions, local socioeconomic conditions, and consumer behavior can affect them. In Hamilton, Canada, the effect of HOV lanes is insignificant because such lanes are not common in that country (Potoglou and Kanaroglou 2007). Figure B3.5.1 The United Kingdom Respondents Familiar with New Vehicle Technologies Liquefied petroleum gas Hybrid-electric vehicle Fuel cell Hydrogen Ethanol Bio-diesel/bio gasoline Compressed natural gas Gas to liquids 0
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Source: United Kingdom Department of Transport 2006. box continues next page
Turning the Right Corner • http://dx.doi.org/10.1596/978-0-8213-9835-7