Sperling, Daniel (1991) From Free Riders to Moral Buyers: The Market for "Green" Fuels and Vehicles. Institute of Transportation Studies, University of California, Davis, Presentation Series UCD-ITS-RP-91-13
Recent surveys have found that a large number of consumers are willing to pay extra and/or accept diminished performance for more environmentally benign fuels and vehicles. Are these surveys accurate? Yes, to the extent that environmentalism has taken hold in many countries, and that many consumers desire less environmentally intrusive fuels and vehicles. But this phenomena should not be interpreted to mean that individuals will necessarily pay more for a "green" fuel or vehicle. This paper provides initial evidence of the magnitude and dimensions of the market for cleaner fuels and vehicles, and explores the public policy implications of this consumer market for environmentally-friendly cars and fuels.