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Auto manufacturers have known and surveys confirm that consumers require short payback periods (2-4 years) for investments in fuel economy. Using societal discount rates, engineering-economic generally find substantial potential to increase fuel economy, cost-effectively. This phenomenon, often referred to as the ?energy paradox?, has been observed in nearly all consumers? choices of energy-using durable goods. Loss aversion, perhaps the most well established theory of behavioral economics, provides a compelling explanation. Engineering economic analyses generally overlook the fact that consumers? investments in fuel economy are not sure things but rather risky bets. Future energy prices, real world on-road fuel economy, and many other factors are uncertain. Loss aversion describes a fundamental human tendency to exaggerate the potential for loss relative to gain when faced with a risky bet. It provides a sufficient explanation for consumers?

We report here results from first year of the BMW MINI E deployment. BMW deployed 450 MINI E?s to North America. Nearly 50% were leased by households in Los Angeles and the New York area. PH&EV Center researchers surveyed MINI E drivers throughout their year with the vehicles, focusing on the experiences of 50 households who volunteered for more detailed interviews. We report here their experiences with driving electric vehicles, adaptions to daily range limitations, and using electricity as a fuel. Presenter Thomas Turrentine, Univ. of California-Davis