We examine the economic and environmental implications of the fuels and pro
pulsion technologies that will be available over the next two decades for p
owering a large proportion of the light duty fleet (cars and light trucks).
Since R&D change is rapid, we treat the uncertainty about future technolog
ies using bounding calculations. A lifecycle perspective is used to analyze
fossil fuels [conventional unleaded and reformulated gasolines, low sulfur
reformulated diesel, and compressed natural gas (CNG)], ethanol from bioma
ss, and electricity together with current and advanced internal combustion
engines (ICE, indirect (port) and direct injection, spark, and compression
ignited) and electric vehicles (battery-powered, hybrid electric, and fuel
cell). Technological advances continue to improve the efficiency and enviro
nmental performance of ICE automobiles powered by low sulfur fossil fuels.
Absent a doubling of petroleum prices or stringent regulation [due, for exa
mple, to intense concerns about greenhouse gas (GHG) emissions], ICE using
fossil fuels will dominate the market for the next two decades. CNG cars ha
ve low emissions, including GHG, but must be redesigned to store enough CNG
to achieve the current range. Battery powered cars have limited range and
are expensive, and the life-cycle of battery components leads to discharges
of toxic materials. Although both hybrid and fuel cell vehicles promise be
tter fuel economy and lower emissions, in the near term these do not justif
y their higher costs. If global warming becomes a major concern, CNG offers
carbon dioxide emission reductions of up to 30%, and bioethanol could prov
ide a fuel with no net carbon dioxide emissions, although the bioethanol pr
ice would be more than twice current petroleum prices.