VIII.14 Analysis of Incentive Options for Hydrogen-Fueled Vehicles

Given the numerous barriers to commercialization, it is necessary to develop policies that provide incentives for the production and purchase of fuel cell vehicles (FCVs) and the development of a hydrogen infrastructure. Over the course of the transition, regulation and policy will need to fulfill certain objectives, including providing financial assistance to the stakeholders involved in developing the technology; reducing the risk and cost of infrastructure; supporting FCV sales to induce manufacturers to produce the vehicles and consumers to purchase them; and facilitate safety, customer awareness, and technology adoption. Once the infrastructure and technology achieve sufficient market penetration the inherent environmental benefits of FCVs will allow them to maintain and grow market share with only the support of overarching environmental policies and regulations.