National Experiences in Environmental Sustainability
Critical Issues in Environmental Taxation series
Edited by Larry Kreiser, David Duff, Janet E. Milne and Hope Ashiabor
Chapter 10: Incentives for the use of natural gas powered vehicles in the United States, New Zealand and Australia
Natural gas fuel for cars and trucks burns cleaner than gasoline or diesel fuel and existing technology is available to produce natural gas powered vehicles (NGPV). Although natural gas fuel is not the ultimate answer for reducing greenhouse gas (GHG) emissions, it can be a successful transition fuel until alternative energy fuel powered vehicles are available for mass production at reasonable prices to consumers. In the 1980s, New Zealand experimented successfully with incentives for the use of natural gas fuel in vehicles. Also, the United States and Australia have provided incentives for the use of natural gas fuel. In this chapter, the authors discuss the merits of these incentives to support the use of NGPV and the effect these incentives have on reducing GHG emissions.
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