Friday, August 16, 2013

Fuel Competition in New Zealand

Zana Nesheiwat explains how New Zealand has been responding to oil's virtual monopoly of transportation fuel. Her article was originally published in Oil Price.

"The island country began its alternative-fuels program in 1979. Financial incentives given by the New Zealand government to citizens for converting their cars to run on replacement fuels, combined with incentives to industry for developing a fueling network, enabled 140,000 vehicles to be converted to CNG or propane through 1985. Unlike Brazil’s alternative fuel program, which placed an emphasis on newly manufactured vehicles, New Zealand relied on vehicle conversions...

And through a cooperative relationship between businesses and government, New Zealand has made real progress toward greater fuel competition. "This is not to say that the U.S. or any other government must introduce costly and unreasonable incentives to drive the transition to alternative fuels and gain consumer acceptance. Rather, the government’s role is to enable an open fuel market — one in which new businesses will compete, prices will fall and innovation will drive efficiency and quality...

"Providing consumers a choice between fuels when filling up their gas tanks will ignite competition that will bring down fuel prices. The safe and efficient use of fuels, such as ethanol and methanol, can be used to expand consumer choice and would require slight modifications to existing vehicles..."

One quick way to this goal is to pass the Open Fuel Standard. Click here to help us make it happen.

Read the whole article here: A Lesson From the Kiwis.

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