Iranian Energy Economics

Modeling Consumer’s Financial Preferences in Acceptance of CNG Vehicles

Articles in Press

Document Type : Research Paper

Author

Nader Dashti

Department of energy economics and management- Tehran Faculty of Petroleum- Petroleum University of Technology- Tehran- Iran

https://doi.org/10.22054/jiee.2025.84218.2131
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.

Keywords

Transportation
Gasoline consumption
CNG vehicle
Greenhouse gases
Subjects
Iranian Energy Economics

Articles in Press, Accepted Manuscript
Available Online from 30 August 2025

  • Receive Date 11 February 2025
  • Revise Date 09 August 2025
  • Accept Date 30 August 2025
  • First Publish Date 30 August 2025
  • Publish Date 30 August 2025

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