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Compressed Natural Gas Vehicles: Financially Viable Option?, Ali Soltani-Sobh, Kevin Heaslip, Ryan Bosworth, Ryan Barnes

Applied Economics Faculty Publications

Natural gas vehicles are being developed because of increasing concerns about energy dependence, air quality and emissions, and, more recently, climate change. The major advantage of natural gas vehicles is their lower fuel cost. Several economic and technical factors such as limited range and availability of relevant infrastructure prevent widespread adoption of natural gas vehicles. A model for the financial analysis of the possibility of compressed natural gas (CNG) vehicles being competitive with gasoline-powered vehicles is offered. The model evaluates the extent to which commuters find adoption of CNG vehicles to be economically viable in the United States. The results …