When it Comes to “Green” Vehicles, What do Consumers Want?
Contact: Jonathan Rubin, Dept. of Resource Economics and Policy and Margaret Chase Smith Policy Center, 207-581-1528
ORONO, Maine — Few consumers take environmental factors into account when they buy a new vehicle, according to early results of a University of Maine research project. With support from a $399,979 grant from the U.S. Environmental Protection Agency (EPA), researchers are meeting with consumer panels, conducting surveys and testing the effectiveness of vehicle performance information targeted at the public.
In particular, they want to know if an “eco-label,” a sticker for cars and trucks that meet environmental standards, would help consumers make decisions.
According to the Maine Department of Environmental Protection, Maine cars and trucks are one of the largest sources of in-state air pollution. Nationally, the EPA says that car and truck tailpipe emissions account for about one third of the air pollution in the United States.
The research team includes Mario Teisl and Jonathan Rubin of the UMaine Dept. of Resource Economics and Policy (REP) and two REP students, Alice White-Cyr, an undergraduate from Parkman, and Caroline Noblet, a graduate student from Gardiner. Collaborating on the project are the Maine Automobile Dealers Association, Inc., the Maine Department of Environmental Protection and the Natural Resources Council of Maine.
As a resource economist, Teisl analyzes consumer labels for clarity, credibility and the potential to affect markets for products and services. Rubin’s research focuses on the economic hurdles faced by new technologies such as vehicles that use fuels other than gasoline.
Over the last year, Teisl, Rubin and their colleagues have conducted an opinion survey by mail in Maine and held six meetings with small groups of consumers in Portland, Lewiston and Orono. The results are being used to design an 18-week advertising campaign this spring by bft International, a public relations firm in Portland.
Using broadcast and newspaper advertising, the campaign encourages consumers to consider environmental attributes, such as air emissions and fuel economy, in their car and truck purchasing decisions. The researchers have a website with environmental information, lists of clean vehicles available in Maine and early research results.
Air emissions are related to a vehicle’s fuel type and engine efficiency as well as to the fuel consumption rate per mile. Some pollutants, such as nitrogen oxides and other organic gases, can lead to the formation of smog. Smog and soot, or particulate matter, can impair health. In addition, all fossil fuel burning engines emit carbon dioxide which contributes to global warming.
Most participants in the consumer panels said they do not use the air emissions and fuel consumption information that is available online despite the fact that their search for a vehicle often begins on the Internet. Most participants said they assume that vehicles comply with government regulations that roughly equalize air emissions among different vehicles.
The U.S. EPA’s “green vehicles” Website rates vehicles from 0 to 10 based on air pollution and carbon dioxide emissions. Fuel economy figures are also included. All information on the site is provided by auto manufacturers.
Overall, says Teisl, consumers have more than 120 options for vehicles that achieve better fuel economy and lower air emissions than competitors within the same class.
The researchers have already produced a report, Designing Effective Environmental Labels for Passenger Vehicle Sales in Maine: Results of Focus Group Research, that is available as a publication from the Maine Agricultural and Forest Experiment Station. See report number MR434 here.