An MIT study has concluded that competitively priced alternative-fuel vehicles may not swiftly capture a large share of the auto market even if it’s three-times more fuel-efficient than a traditional car, according to the Boston Globe
Consumers won’t consider buying alternative-fuel vehicles until a critical mass of them is on the road, the study suggested, and energy companies won’t build alternative-fuel filling stations until they’re certain about future demand.
MIT researchers studying market and consumer behavior at the Sloan School of Management call the situation a Catch 22, according to the MIT News Office.
According to the Boston Globe
however, the report also said that if policy incentives to switch to alternative-fuel vehicles are kept in place long enough, adoption will reach a level at which the market will begin to grow on its own.