Market potential of compressed natural gas cars in the Swiss passenger car sector

Abstract

The transportation sector generates 26% of total worldwide CO2 emissions (International Energy Agency (2000)). Given rising concerns over fossil fuel consumption and CO2 production by passenger cars, the automotive industry and governments are evaluating strategies for sustainable mobility. The European Communities (2001) believes that there is great promise in the development of a new generation of hybrid electric cars (electric motor coupled with an internal combustion engine), cars fuelled by compressed natural gas and, in the longer term, cars powered by hydrogen fuel cells. The paper’s objective is to describe the specific competitive conditions that will determine the successful market diffusion of natural gas vehicles in Switzerland. Natural gas vehicles may smooth the impact of transport as they are less polluting and may be run on biogas, a renewable fuel.