Determinants of consumer interest in fuel economy: Lessons for strengthening the conservation argument

With an outlook for higher global energy prices and concomitant increase of agricultural resources for the pursuit of fuel, consumers are expected to seek more fuel-economic transportation alternatives. This paper examines factors that influence the importance consumers place on fuel economy, with attention given to differences between American and European consumers. In a survey conducted simultaneously in the United States (U.S.) and Belgium in the fall of 2006, respondents in both countries ranked fuel economy high among characteristics considered when purchasing a new vehicle. Overall, respondents in the U.S. placed greater emphasis on fuel economy as a new-vehicle characteristic. Respondentsʹ budgetary concerns carried a large weight when purchasing a new vehicle as reflected in their consideration of a fuelʹs relative price (e.g. gasoline vs. diesel vs. biofuel) and associated car repair and maintenance costs. On the other hand, high-income Americans displayed a lack of concern over fuel economy. Concern over the environment also played a role since consumers who felt empowered to affect the environment with their purchasing decisions (buying low and clean emission technology and fuels) placed greater importance on fuel economy. No statistically significant effects on fuel economy rankings were found related to vehicle performance, socio-demographic parameters of age, gender or education. Importantly, the tradeoff between using agricultural inputs for energy rather than for food, feed and fiber had no impact on concerns over fuel economy. Finally, contrary to expectations, U.S. respondents who valued domestically produced renewable fuels did not tend to value fuel economy.