Effects of fuel efficiency improvements in personal transportation

Purpose – The purpose of this paper is to provide an assessment of the effects of fuel efficiency improvements on four‐wheeler ownership, fuel consumption, fuel imports and emissions for personal transportation in the context of India. The paper also aims to measure the rebound effect induced by this policy.Design/methodology/approach – The paper relies on a system dynamics model to analyse the problem. A causal loop model was developed initially, which was transformed to a stock and flow diagram. Simulation was carried out to capture the effects of fuel efficiency improvements in the four‐wheeler sector of India.Findings – The study has revealed that a policy of fuel efficiency improvements is favourable to the Indian four‐wheeler sector growth, but this policy could result in an increase in fuel consumption and therefore a corresponding increase in the fuel imports and emissions in the country. This policy also induces direct rebound effect that adds up to the already alarming fuel consumption levels.Re...

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