Incentives to make private and company stakeholders go for clean vehicles include green transport procurement, priority lanes for clean vehicles or for clean taxis, test fleets, free or subsidised parking, tax reduction, congestion charging discount among others.
Incentives are very important for achieving market penetration for bioethanol and FFVs. Investors need long term incentives. Incentives can be suspended or removed when the bioethanol production industry has fully developed. The various market stages require different incentives.
Only in Stockholm/Sweden was sufficient data available to make a statistical analysis of the effect of various incentives. This analysis concluded that at the market development stage:
The single most important incentive is to ensure that the price of bioethanol is equal to or lower than that of petrol (and reflects the different fuel consumption rates).
Exemption from congestion charging was the second most important instrument to stimulate the use of clean vehicles and bioethanol in Stockholm.
Incentives impacting on operating costs are more effective then incentives targeting initial costs.
Free residential parking and a national purchase subsidy influence sales less than fuel price and exemption from congestion charges.
In addition, BEST made the following conclusions:
An environmental bonus offered by car manufacturers proved to be very effective in the Netherlands.
Competitive fuel prices have the most positive impact on E85 sales.
The presence of a local/national bioethanol production industry increases opportunities for the introduction of incentives.
Cooperation with the right stakeholders is crucial.