Economic costs and environmental impacts of alternative fuel vehicle fleets in local government: An interim assessment of a voluntary ten-year fleet conversion plan

Vehicle fleets are widely viewed by policy makers as attractive first markets for introduction of alternative fuel technologies. Although, it is essential to understand the environmental benefits and economic challenges involved in fleet conversion, the literature provides little understanding of the implementation issues associated with alternative fuel vehicles. This paper examines the cost effectiveness and environmental impact of the conversion of a 180 plus vehicle fleet to alternative fuel vehicle technologies by a public organization at the mid-point of the project implementation. Using multi-year micro data on fuel usage, operational and capital expenditures, mileage and emissions, the paper examines conversion costs and infrastructure investments required, extent of user adoption, and emissions reductions achieved. Results are discussed in terms of their implications for managerial practice in local government fleet agencies and for future research.