By COLIN WILSON-MURPHY
Americans are showing more interest in hybrid vehicles amid high gas prices and increased concern for the environment, says a new survey by marketing firm J.D. Power and Associates.
As of late June, in New England regular grade gasoline prices averaged $4.12 per gallon, including all taxes. With a 37% increase from one year ago, it is no surprise that Connecticut residents are becoming more interested in hybrid vehicles.
In fact, 72% of US consumers say they are interested in having hybrid-electric technology in their next new vehicle. This marks a considerable increase from the 2005 study, when 58% of consumers reported they were interested in the technology.
As the price of retail gasoline continues to increase, and the cost of producing hybrid vehicles continues to fall, the inevitable migration from traditional gas and diesel powered vehicles to hybrid technology will transform the automobile industry. This phenomenon is commonly referred to as the substitution effect. As the price of gasoline increases, people will buy less of it. Instead, the consumer will spend his or her money on gas conserving technologies, such as hybrid vehicles, resulting in positive changes for the consumer and the environment.
I wouldn’t go out and buy a hybrid just yet— a few more years of development and price adjustments and they will be worth the money you’d save on gas.