This is a test post. Survey data is commonly used to determine factors affecting the demand for HEVs. These studies have overall concluded that hybrid owners chose to buy their HEVs because they are more sensitive to changes in gas prices than the environmental benefits their hybrids would contribute. These studies have also shown that hybrid owners are typically in the highest income demographics (Changewave Research 2005: Year of the Hybrid 2004). The high discount rate that consumers anticipate on their cost-saving hybrid technology is also a contributor to the demand of HEVs. Consumers expected payback for an HEV investment in as little as three years (Burke 2004, and Jaffe 1994). A previous model of automotive demand showed that consumer’s perceived utility for automobiles is usually higher than the actual utility they receive (Berry, Levinsohn, and Pakes 1995).

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