Journal of Engineering and Public Policy
(Vol. 9, August 2002)

The Path toward Widespread Deployment of Hybrid-Electric Vehicles

By Elizabeth Johnston

Executive Summary

This paper represents an independent analysis of the future potential of hybrid-electric vehicle (HEV) technology. It focuses on the ability of HEV technology to displace oil use and the public policy decisions which must be made in order to encourage the deployment of this technology. It also considers alternative technologies and debates the merits of competing approaches to advancing vehicle technology.

Encouraging the use of HEVs is an essential part of what should be an overall strategy to reduce U.S. dependence on foreign oil by fully applying our most efficient technologies to reduce our consumption. The vehicle efficiency improvements of the 1970s demonstrate that with a national will, great changes can be made to improve vehicle design. The technical feasibility of HEVs is not in question, but rather the increased cost of the technology, the perceived value of fuel efficiency, and the “leap-frog” attitude toward this technology are all barriers that are limiting the market penetration of these vehicles.

As demonstrated by the enthusiastic adoption of HEV technology to date, consumers are ready for a change. The early-adopter portion of consumers must be developed and encouraged in order to secure a greater market share by more efficient HEVs. Current government tax incentives are a good forward step. The much lauded hydrogen economy is not right around the corner and a lot of research and development needed for that transition can be obtained through continued research and development into improving HEV technology and design.

HEVs will expand efficient vehicle consumer choice and bring profits to those companies who decide to invest in producing these vehicles. We must have public policies which encourage innovation based technologies. The specific recommendations of this paper are to encourage future vehicle research and development, reform U.S. efficiency standards, reevaluate our current tax strategies and incentives, institute a “feebate” system to reward vehicle efficiency, and to encourage government fleet purchases of hybrid-electric vehicles.

 

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