What Drives Demand for Clean Diesel Cars?

They've left their noisy, balky, sooty ways far behind, but many clean diesel cars sold in Europe aren’t available in the United States.


| February/March 2010


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.

Until recently, relatively low gas prices made fuel economy at best a minor priority for most Americans. But that has changed — perhaps permanently. Not only did gas prices spike in the summer of 2008, but they have remained unstable ever since. Diesel fuel also used to be less expensive than gasoline, but that too has changed in recent years. In general, diesel is now more expensive than gas, and its price fluctuates at a different rate than that of gasoline.

Policies from the federal government also have affected the price of diesel fuel. Federal taxes on diesel fuel are higher than those for gasoline: 24.4 cents per gallon for diesel compared with 18.4 cents per gallon for gasoline (state taxes on gasoline and diesel vary). In contrast, many European countries tax diesel less than gasoline in order to promote an increase in fuel efficiency.

Keith Karolyi
12/4/2010 10:40:10 AM

All of my German friends are amazed at the fact that diesel fuel here in the States is more expensive than gasoline. I have to explain to them that it's mainly about how the fuel is taxed and how the automakers didn't adopt a diesel mentality for all the reasons mentioned in the article. I agree with Doug that Algal oil is the fuel that will make this turn around before too many years go by. It the only plant source for oil that can produce enough to meet all our vehicle fuel needs without eating up all of our food crops or cropland.


Doug Smith
3/9/2010 11:52:01 AM

Look, Diesel is the way to go as it has gotten better, and Diesel vehicles get better fuel economy than their gasoline counterparts. One thing to consider is that the more diesel cars there are, the less gasoline cars there are and therefore the more crude oil that can be dedicated to making Diesel. Also, before you get on your bandwagon, there is a lot of development on Algae oil to Biodiesel and this is going to happen very soon on a commercial scale. This will offset any extra demand, and it has several added benefits. Those are lubricity, solvency, and better emissions. This means even better performance from a Diesel engine as it will last longer. A VW Passat for example gets 19-24 mpg on gasoline, while it's counterpart the TDI (Turbo Diesel) gets around 40 mpg.


hobbbes
3/6/2010 10:34:30 AM

To those who think diesel is more expensive to create, that is hogwash. When I take a barrel of crude oil for processing to fuel the absolute first thing I must do is to remove the diesel. It is a simple chemistry process. Everytime a diesel powered vehicle fuels up we are raping the user as we are in an industrial society that runs on diesel. This nation throws away over 3 million gallons of waste vege oil a day, to the intrepid few Make Bio-diesel it works...it won't break your pocket and it is renewable...ppl love to eat(basic necessity)...er ah dinner or take out or a drive thru... Think part of that was cooked in a fryer or on a grill...restaurants pay to have their grease hauled away...think low cost bio diesel






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