Work detail

Connection between Fuel Prices and Demand for Electric and Hybrid Cars

Author: Bc. Vojtěch Bystřický
Year: 2020 - summer
Leaders: prof. PhDr. Ladislav Krištoufek Ph.D.
Work type: Bachelors
Language: English
Pages: 64
Awards and prizes:
Abstract: Nowadays, the adoption of alternative fuel vehicles, especially electric and hybrid cars,
has become one of the most important topics of the current automotive industry. So far,
the previously conducted studies suggest various factors to have an impact on the demand
for such vehicles. Among other things, some researchers believe that gasoline prices may
influence the sales of alternative fuel vehicles in a way that higher gas price leads to an
increased demand for those vehicles. This thesis analyzes the relationship between gasoline prices and the sales of hybrid and electric cars in two different environments and
time periods. Firstly, we examine the connection between gasoline price and the sales
of Toyota Prius in the United States between years 2005 and 2018. Secondly, a current
situation among various European countries regarding the market shares of plug-in electric vehicles is analyzed, using data from years 2016-2019. This paper has proven the
gasoline price to be a statistically significant factor affecting the demand for electric and
hybrid vehicles in a way that higher gasoline price leads to an increased demand for those
vehicles. Moreover, this paper also provides some new evidence of the importance of other
factors, which are known to affect the demand for alternative fuel vehicles from previously
conducted studies. Although we have managed to arrive to such results, the models still
partially suffer from some subtle limitations, which are discussed within this thesis as well.


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