RAND paper finds diesel, hybrid vehicles can provide more societal benefits than gas-pow...(r net cost burden for larger vehicles an...)

Both the hybrid and diesel vehicles are more fuel efficient than their gasoline-powered counterparts: 25 to 40 percent better for hybrid and 20 to 30 percent for diesel, depending on the vehicle.

While it is assumed that the hybrid vehicle will save more fuel than the advanced diesel, the overall advantage goes to the diesel because of its lower technology costs and better performance such as increased torque, Graham said. For E85, it is the cost of producing the fuel, not vehicular changes, that drives the negative results.

The key findings from the societal perspective are similar to those of the consumer perspective, including:

• The advanced diesel again shows the most promise, particularly for the larger vehicles: $289 for cars, $1,094 for SUVs and $2,199 for large trucks.

• The net benefits for hybrids are somewhat less positive, with moderate-to-small values of $481 for SUVs and $132 for light trucks, and an increased cost for cars (-$317) over the life of the vehicle

• Results for E85 remain uniformly negative, even more so for larger than smaller vehicles: -$1,046 for cars, -$1,500 for SUVs and -$2,049 for light trucks

While the net benefit of E85 is generally unfavorable compared to hybrid and advanced diesel technology, the diesels edge over the hybrid is not as significant, Graham said. If the cost of hybrid technology falls significantly, the benefits of the hybrid could equal or exceed the diesel.

The report finds that E85 does not generate net societal benefits unless a breakthrough reduces ethanol production costs or gas prices stay near their current high levels for a sustained period of time.

Hybrid and diesel technology are close, but diesels have the advantage for the typical motorist, and provide a stro
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