Publication Detail

New Transportation Fuels in New Zealand: Innovation, Social Choice and Utility

UCD-ITS-RP-84-05

Research Report

Suggested Citation:
Kurani, Kenneth S. (1991) New Transportation Fuels in New Zealand: Innovation, Social Choice and Utility. Institute of Transportation Studies, University of California, Davis, Research Report UCD-ITS-RP-84-05

This is an analysis of consumer response to new transportation fuels in New Zealand during the 1980s. It is based on hypotheses from previous studies of consumers in the US and on a new theoretical construct of developing markets for new fuels. Additionally this is a brief history of energy and transportation fuels in New Zealand during the 1970s and 1980s. This is not intended to be a complete history – merely necessary background for interpreting consumer actions. Specific hypotheses include: consumers use simple cost measures such as fuel price and payback period instead of more sophisticated measures; maintenance attributes are important determinants of satisfaction with, and commitment to, the new fuel and vehicle. Further, these hypotheses are cast within a framework which identifies the interaction between market development, market segments and consumer decision processes. Though this is a posthoc application of the theory to data gathered in a mail survey of household CNG and LPG vehicle owners in 1988, evidence is found for the hypothesized market segments. Extensions are made from New Zealand to possible consumer behavior with new transportation fuels in the US.