Team Members
Fangzhou Zhang, Yue Wang, Tong Guo
Adviser
Prof. Paul Edwards
Project Summary
One of the most widespread policies to foster environmental sustainability is the government’s supports for the purchases of hybrid vehicles. The Energy Policy Act of 2005 provides tax credits amounting to $3000 at most for consumers who purchase energy efficient vehicles. The tax credit provided for purchasers of hybrid vehicles is considered as a powerful tool to promote the hybrid vehicles, which typically achieve more efficient fuel economy and lower emissions.
Despite a booming market for autos as a result of economic recovery, the sales for hybrid vehicles are decreasing due to recent drop in gas prices. The question that we aim to answer is to what extent is the potential consumers’ decisions to purchase hybrid vehicles are determined by the tax credits and fluctuating gas prices. This will not only help us understand the rationale behind the individual choices, but will also guide the policy toward environmental sustainability.