COST ANALYSIS OF A GHANAIAN CASE: ASSESSING THE CONSUMER RESPONSE TO FUEL ECONOMY IN THE FACE OF GLOBAL FUEL CRISES

A significant key factor influencing the total cost of national fuel efficiency requirements is how consumers weigh trade transactions between the purchase price of higher fuel economy and the expected fuel savings. Vehicle selection modeling can be used to assess differences in consumer vehicle buying trends, as well as how these variations affect consumer surplus and compliance costs. The study uses a specific selection test with comparative test conditions to explore how it can affect the visual value of fuel economy data. The following fuel economy data are presented differently under each of the six factors: the average amount of money saved/spent over four years compared to a class vehicle, miles per gallon, six years of fuel cost, annual fuel costs, full government-mandated fuel economy stamp and lifetime fuel cost. The national representative sample of 950 prospective car buyers in Ghana was roughly assigned to one situation (in Ghana). The study found that the data provided had a causal effect on how consumers evaluate fuel economy. In comparison to criteria merely presenting the yearly cost of fuel, five-year cost of fuel, and spend/save compared, the study considerably greater willingness-to-pay the values for participation in the scenario with the whole fuel economy labeling. Value changed according to participant statistics: Older participants and those who expected to pay a slightly lower amount for their future car placed a higher value on fuel economy. Despite little information to determine the comparative significance of these myriad theories, this research explores possible explanations for why there may be discrepancies between what consumers are willing to pay for fuel economy and what automakers offer.