Abimbola Babatunde, et. al. International Journal of Engineering Research and Applications www.ijera.com ISSN: 2248-9622, Vol. 12, Issue 9, September 2022, pp. 211-216 www.ijera.com DOI: 10.9790/9622-1209211216 211 | Page Determinants of the Demand for Alternative Energy in the U.S. Public Transportation System. Abimbola Babatunde*, Dr. Jacob O. Oluwoye**, Dr. Deden Rukmana***, Dr. Joyce Pressley**** & Dr. Aschalew Kassu***** *Department of Community and Regional Planning, College of Agricultural, Life and NaturalSciences (CALNS), Alabama A & M University **Department of Community and Regional Planning, College of Agricultural, Life and NaturalSciences (CALNS), Alabama A & M University ***Department of Community and Regional Planning, College of Agricultural, Life and NaturalSciences (CALNS), Alabama A & M University ****Department of Community and Regional Planning, College of Agricultural, Life and NaturaSciences (CALNS), Alabama A & M University *****Department of Mechanical, Civil Engineering & Construction Management, College of Engineering, Technology & Physical Sciences (CETPS), Alabama A & M University, *Corresponding Author: Abimbola Babatunde ABSTRACT The process of improving the present transportation system to a more renewable structure is a global challenge because the sector is still heavily dependent on fossil fuels which inadvertently produces a significant proportion of greenhouse gas. There is increased awareness of the use of alternative fuels to improve air quality and promote cleaner energy in the public transportation system. This study aimed to examine the determinants of demand for alternative energy in the U.S. public transit system. Secondary data extracted from Clean Cities Alternative Fuel Price Reports, US EIA,and Bureau of Transportation Statistics were subsequently analyzed with the vector autoregression (VAR) technique. The findings demonstrated that alternative energy sources and their conventional counterparts are close substitutes. The variation of their quantities and prices shows that the popularity of one is a drag on sales of the other. The U.S. population and total registered buses appear to have only marginal effects on the promotion of alternative fuels in U.S. public transportation.The paper concluded that efforts to promote alternative fuels need maximum coordination from the authorities. The demand for alternative energy should be cushioned by regulating its prices and promoting its availability. Keywords: Alternative fuel, Public transit, Demand, VAR -------------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 10-09-2022 Date of Acceptance: 25-09-2022 -------------------------------------------------------------------------------------------------------------------------------------------- I. INTRODUCTION Fossil fuel formation takes millions of years and comes from ancient animals and microorganisms. It is not renewable. Huang et al[1]. It has been predicted that fossil fuels may not be available for the next 65 years. However, the United States transportation sector relies heavily on petroleum products. EIA 2009[2]. In the U.S., initiatives to minimize dependence on the usage of fossil fuels range from the establishment of the National Highway Traffic Safety Administration program to the Department of Transportation’s law on minimum fuel economy standards for minimum and heavy-duty vehicles. Public transport as the major means of travel releases emissions that cause environmental noise while national income is plunged into the importation of fuel. Yet, the demand for conventional fuels keeps rising. EIA 2009[2]. According to Amrouche et al. [3], transportation is the major source of particulate matter and greenhouse gas emissions through gasoline and diesel engines. Vehicles have different engines and capacities which make their level of fuel consumption differ. Varieties of fuels that can be used to propel RESEARCH ARTICLE OPEN ACCESS