Automotive Life Cycle Economics and Replacement Intervals

In the United States, the predominant mode of personal transportation is the automobile with over 90% of all passenger miles traveled in 1997 (Davis and Diegel 2002). Similarly, total passenger miles traveled annually in the U.S. have been growing at nearly three times the rate of population over past two decades. With transportation contributing more than 25% of global carbon dioxide emissions (WBCSD 2001) and personal vehicles accounting for 14% of U.S. energy use (Davis and Diegel 2002), the critical role of the automobile in sustainability challenges is clear. The development of meaningful sustainable mobility solutions requires detailed understanding of the relationships between vehicle economics, vehicle performance, individual behavior, emissions, and more general societal and community factors. This study provides a framework for understanding overall vehicle economics and key economic variables in relation to individual ownership costs, operating decisions and replacement intervals. In combination with a parallel study of vehicle emissions and the implications for retirement (Kim et al. 2003), a more comprehensive view of the complex economic, environmental, and social system surrounding automobile use in the US is possible.