Natural gas vehicles: An option for Europe

Abstract

In Europe natural gas vehicles play a minor role. A decisive reason for this is the dependence of most European countries from gas imports. Except for Italy, there is no tradition to use natural gas as fuel. In addition, there is a lack of infrastructure (e.g. fuelling stations). In contrast to Europe, in Latin American and Asian countries natural gas vehicles are widespread. Some countries foster natural gas vehicles because they have own gas resources. Many countries must reduce the high air pollution in big cities. Environmental reasons are the main motive for the use of natural gas vehicles in Europe. In last years, high oil prices stimulated the use of natural gas as fuel. European governments have developed incentives (e.g. tax reductions) to foster natural gas vehicles. However, the focus is on hybrid technology and the electric car, which, however, need further technical improvement. In contrast, the use of natural gas in conventional engines is technically mature. Additional gas imports can be avoided by further improvements of energy efficiency and the use of renewable energy. In sum, the market penetration of natural gas as fuel should be promoted in Europe.Natural gas vehicles Environment CO2

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Research Papers in Economics

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Last time updated on 06/07/2012

This paper was published in Research Papers in Economics.

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