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From: Consumer value of fuel choice flexibility - a case study of the flex-fuel car in Sweden
Results | |
---|---|
Discounted costs for gasoline | 221 479 SEK |
Discounted costs for ethanol | 202 765 SEK |
Discounted costs for min[gasoline, ethanol] | 183 625 SEK |
Value of Switching option | 37 854 SEK |
Option value – option price (flex-fuel premium) | = 37 854–6 000 = 31 854 SEK |
Net value + plus subsidy | = 31 854 + 10 000 = 41 854 SEK |