One crucial determinant of the overall cost of national fuel efficiency rules is how consumers evaluate trade-offs between the initial cost of vehicles with better fuel economy and the anticipated savings in fuel expenses. Vehicle selection modeling is a useful tool for evaluating variations in customer preferences when it comes to purchasing vehicles. Additionally, it explores the impact of these changes on consumer surplus and compliance costs. The study employs a particular selection test under comparison test conditions to investigate its impact on the visual representation of fuel economy data. The fuel economy data is displayed distinctly for each of the six factors: average monetary savings/spending over four years compared to a car in the same class, miles per gallon, fuel costs over six years, yearly fuel prices, the complete government-mandated fuel efficiency label, and the total fuel cost throughout the lifetime of the vehicle. A nationally representative sample of 950 prospective car purchasers in Ghana was randomly allocated to a single situation throughout the country. The study determined that the data presented had a direct impact on how consumers assess fuel efficiency. When comparing other criteria such as annual fuel cost, five-year fuel cost, and spending/saving comparisons, the study found a significantly higher willingness to pay value for participating in the scenario that included fuel economy labels. The value was adjusted based on participant statistics. Participants of advanced age and those who anticipated a somewhat reduced expenditure for their forthcoming automobile attributed greater significance to fuel efficiency. This research investigates potential reasons for the disparities between consumer willingness to pay for fuel efficiency and the offerings of automakers, despite the limited available data to assess the relative importance of these various theories.

fuel economy; consumer response; purchase price; participant statistics; Ghanaian economy

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