Fuel Economy and Pollution Control of Using Electro-Hybrid Cars

Statistics indicate a continuous growth in gasoline consumption for transportation in Iran. The volume of domestic consumption of gasoline in recent years has exceeded the country’s refining capacity, and a substantial volume has to be imported to meet the increasing demand for fuel. A growing urban population, together with ever increasing popularity of cars and subsidized fuel prices are considered among the most significant factors for this phenomenon. Which, among other problems, has created a substantial burden for the public budget and a rather serious air pollution in urban communities. Although, rising fuel consumption and its environmental impact could be seen as a common problem in most countries today, it is noteworthy however, that technological progress in urban transportation has presented certain useful alternatives. This study attempts to use advanced econometric methods to postulate a perspective for the long term gasoline consumption in Iran. Subsequently, it proceeds to examines the economic feasibility of utilizing a more advanced automobiles (i.e. Electro Hybrid cars) as an alternative mean for urban transportation. Findings of the study indicate a rather substantial stream of benefits for the economy, in terms of reduced gasoline consumption, as well as, lower air pollution for urban centers.