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A Southern Georgia school district is considering ordering 59 propane-fueled school buses. They're healthier, they're cleaner burning, and they're much quieter than the diesel option,
A Southern Georgia school district is considering ordering 59 propane-fueled school buses. "They're healthier, they're cleaner burning, and they're much quieter than the diesel option," said a school administrator. Propane-powered buses also reduce greenhouse gasses by 21% compared to gasoline-powered buses and 5% compared to diesel ones. But they come at a premium-\$101,000 for a propane model, $14,000 more than the diesel equivalent. The propane bus operating cost (above and beyond fuel cost) is 29 cents/mile, compared to 38 cents for the diesel. Diesel fuel costs about $5 /gallon in Georgia, about $1 more than propane. Bus mileage is 11mpg for the propane model vs. 10mpg for diesel. The life of a school bus in the district averages 8 years, and each bus travels an average of 39,000 miles per year because the district is so large and rural. Which bus is the better choice based on a life-cycle analysis? The total cost of using one propane-fueled bus during its life cycle is $. (Round your response to the nearest dollar.)
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