Determinants of Alternative Fuel Technology for Small Road Freight Transport Companies in Sweden

Abstract: The transportation sector plays a significant role in global carbon emissions, emphasizing the need for transitioning to alternative fuel technologies. This thesis primarily aims to examine the factors that influence small road freight transport companies in Sweden when transitioning to alternative fuel technology. The focus is on identifying these determinants and their respective significance, utilizing a company internal Resource-Based view as the analytical framework. Semi-structured interviews were conducted among small road freight transport companies, with data analyzed using pattern and keyword matching analysis. The results reveal multiple determinants within financial, technological and organizational resources. Range, purchase cost, and customer demand emerged as the most influential determinants, with range limitations hindering adoption and high costs deterring investment. However, customer demand for eco-friendly transport presents an opportunity for companies to gain a competitive advantage. Company size, cargo type, and operational constraints also influence decision-making. In the data selection, micro companies exhibit a higher propensity for drop-in alternative fuels, while small-sized companies engaged in short-haul transportation are more open to alternative fuel adoption and riskier investments. Risk-averse followers tend to stick to established practices. Policymakers are recommended to invest in infrastructure, provide subsidies, and implement regulations to incentivize adoption, while vehicle producers should optimize designs and collaborate with fuel producers. Further research is advised to investigate the viability of different low-carbon fuel alternatives, explore challenges and motivations faced by different company types, and conduct comparative studies. Quantitative research methods can offer broader insights into this area of study.