Document Type : Research Paper
Author
Department of energy economics and management- Tehran Faculty of Petroleum- Petroleum University of Technology- Tehran- Iran
Abstract
The aim of this article is modeling of consumer financial preferences in selecting between gas-powered and gasoline-powered vehicles, without considering infrastructure limitations and drawbacks of CNG vehicles. For this purpose, using quantitative analysis based on present value and economic modeling, the financial benefits of dual-fuel vehicles are assessed under various vehicle price and fuel price scenarios. The results indicate that, given the current price difference between gasoline and CNG, along with vehicle purchase and maintenance costs, consumers do not derive financial advantages from switching to CNG. Furthermore, infrastructure limitations and disadvantages of CNG vehicles, such as refueling station availability and safety concerns, hinder broader acceptance of dual-fuel vehicles. However, if the fuel price differential reaches 70,000 Iranian Rials (IRR) and dual-fuel vehicles are only 250 million IRR more expensive than gasoline-powered vehicles, the acceptance rate for CNG increases to 58.71%. On the other hand, higher acceptance rate of CNG vehicles lead to reduced greenhouse gas emissions and contribute to the country’s trade balance improvement.
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