Public and private vehicle fleets have long been targeted as an ideal initial market for alternative fuel vehicles (AFVs). We examine seven widely accepted hypotheses regarding the potential fleet market for AFVs. The hypotheses are tested using data and information collected from focus group sessions, one-on-one interviews with fleet operators, and a large two-part survey administered to over 2700 California fleets, as well as secondary sources. We find a large number of misconceptions by both fleet operators and policymakers that lead to distorted expectations and ineffective policies regarding the purchase and use of AFVs by fleets.

Vehicle fleets are a poorly understood part of the economy. They are important, though, in that they purchase a large share of light-duty vehicles and are often targeted by governments as agents of change. We investigate fleet purchase behavior, using focus groups, interviews, and mail and telephone surveys. We categorize fleets into four different decision-making structures (autocratic, bureaucratic, hierarchic, and democratic) , determine what share of the market sector each represents, describe salient features of each behavioral model, and explore implications of that behavior for industry investment and public policy.

Public and private vehicle fleets have long been targeted as an ideal initial market for alternative fuel vehicles (AFVs). We examine seven widely accepted hypotheses regarding the potential fleet market for AFVs. The hypotheses are tested using data and information collected from focus group sessions, one-on-one interviews with fleet operators, and a large two0part survey administered to over 2700 California fleets, as well as secondary sources. We find a large number of misconceptions by both fleet operators and policy makers that lead to distorted expectations and ineffective policies regarding the purchase and use of AFVs by fleets.

Vehicle fleets are a poorly understood part of the economy. They are important, though, in that they purchase a large share of light-duty vehicles and are often targeted by governments as agents of change. We investigate fleet purchase behavior, using focus groups, interviews, and mail and telephone surveys. We categorize fleets into four different decision-making structures (autocratic, bureaucratic, hierarchic, and democratic), determine what share of the market sector each represents, describe salient features of each behavioral model, and explore implications of that behavior for industry investment and public policy.