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Eco-Car Market Not So Rosy

by erin on Thursday, May 31st, 2007

While the eco-car market seems to be booming — several automobile makers are experimenting with hybrid, hydrogen, bio-diesel and even air fueled models — a recent study says that it might be difficult for the eco-car market to become more than a niche market.

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The Boston Herald writes

The problem is a classic Catch-22: People won’t buy alternative-fuel cars until many others do – and therefore many can’t be sold until many are, according to the findings of a market “system dynamics model” prepared by two researchers at MIT’s Sloan School of Management.

Without a critical mass of drivers, the infrastructure for alternative-fuel cars – such as building new fuel stations across the country – simply can’t be built.

Motorists in turn won’t buy the cars if a convenient and affordable infrastructure isn’t in place.

“The challenge is not just introducing an (alternative-fuel) vehicle,” said Jeroen Struben, a postdoctoral associate at MIT, who worked on the study along with professor John D. Sterman.

“Consumer acceptance, the fueling infrastructure and manufacturing capability all have to evolve at the same time.”

The researchers didn’t dismiss the possibility of a “tipping point” occurring that would propel alternative-fuel cars into the mainstream.

This is probably why hybrid models are becoming the most popular — they aren’t significantly different from more traditional models, meaning integrating them into our lifestyle and highways isn’t so bold!

via boston herald

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Categories: Alternative Energy, Auto, News.

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