What Drives Demand for Clean Diesel Cars?

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The ECOnetic Ford Fiesta is a clean diesel car with an engine that gets 65 mpg — but it's only available in Europe.
The ECOnetic Ford Fiesta is a clean diesel car with an engine that gets 65 mpg — but it's only available in Europe.
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In the United States, federal taxes on diesel fuel are 6 cents/gallon higher than on gasoline.
In the United States, federal taxes on diesel fuel are 6 cents/gallon higher than on gasoline.

Why are there so many more models of clean diesel cars in Europe than we have here in the United States?

Thomas Cantrell
San Francisco, California

It’s true that diesel cars are quite popular in Europe, certainly more so than in the United States. In some European countries, diesel cars outsell gasoline cars. But a variety of recent changes may make diesel cars much more common in the United States.

The main reason for diesel’s popularity in Europe is simple economics: Fuel (gasoline and diesel) is much more expensive in Europe than it is in the United States, primarily because of higher taxes. In 2008, while we were complaining about $4/gallon gasoline, the price of both gasoline and diesel in Europe was about $8.50 per gallon. With that in mind, diesel cars are a more compelling choice for Europeans because they are about 30 percent more fuel efficient than their gasoline-powered counterparts (for perspective, that’s about the same difference as that between a regular gas car and a gasoline-electric hybrid car). Over the years, demand from European drivers for diesel cars has sparked a wide range of diesel models and sizes.

  • Published on Dec 30, 2009
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