Transitioning to a Greener Fleet: A Cost-Benefit Analysis of a Vehicle Fleet Program at the Texas General Land Office in Austin, Texas

Abstract

This study will accomplish three things. First, the study will provide a detailed discussion on cost-benefit analysis and how this type of analysis is used in the decision making process. Second, the study will provide background information on hybrid vehicles and alternative fuels their effect on the environment and the benefit these technologies can have on state and local fleets. Finally, the study will apply the technique of cost-benefit analysis of incorporating hybrid vehicles into the vehicle fleet program at the Texas General Land Office (GLO) in Austin, Texas. A discussion of the scholarly literature defines the costs and benefits associated with a program and offers uses for a cost-benefit analysis. The conceptual framework links the benefits and costs of hybrid vehicles introduced into the vehicle fleet program to the existing literature. The operationalization of the costs and benefit variables are identified, showing how each is measured. Additionally, the decision criteria of present value and net present value are used to determine the viability of the new fleet program. A sound cost-benefit analysis can help decision makers evaluate choices and assure the chosen project will provide the best return on investment. The findings of this study show that the Texas General Land Office can save approximately 100,000 each fiscal year for a three year period by introducing hybrid vehicles into the fleet. Additionally establishing motor pools at each field office with present on-going fuel savings each year.