A major polluter of CO2 emissions is the individual transport by passenger cars. Hence, an important objective of current EU transport policy is to reduce fossil fuel consumption and the specific CO2 emissions of passenger cars (CO2 per km). Besides the introduction of more energy efficient passenger cars the focus of the political discussion lies on the introduction of cars with new propulsion technologies using alternative fuels. But relatively little is known about the preferences of the consumers concerning these new propulsion technologies and alternative fuels. Thus, the economic effects resulting from individual behavior of the consumers are mostly ignored in the analyses. This lacked in research motivates our project. The decisions of the consumers were modelled using microeconometric methods. A survey was conducted to collect the necessary individual data. The results were also used as input for a microeconomic analysis which models the market of new propulsion technologies and alternative fuels. This analysis took into account all relevant externalities (network effects, R&D spillovers, and environmental externalities).  Building on this model dynamic simulations were used to examine political regulation instruments and their economic consequences. The results can be used for policy advice and for consulting of the car and energy industry.