FEES AND REBATES ON NEW VEHICLES - IMPACTS ON FUEL EFFICIENCY, CARBON-DIOXIDE EMISSIONS, AND CONSUMER SURPLUS

Citation
Ke. Train et al., FEES AND REBATES ON NEW VEHICLES - IMPACTS ON FUEL EFFICIENCY, CARBON-DIOXIDE EMISSIONS, AND CONSUMER SURPLUS, TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW, 33(1), 1997, pp. 1-13
Citations number
30
Language
INGLESE
art.tipo
Article
Categorie Soggetti
Transportation,"Operatione Research & Management Science",Transportation
ISSN journal
1366-5545
Volume
33
Issue
1
Year of publication
1997
Pages
1 - 13
Database
ISI
SICI code
1366-5545(1997)33:1<1:FARONV>2.0.ZU;2-W
Abstract
Several incentive systems are examined that provide rebates on vehicle s with higher-than-average fuel efficiency and levy fees on vehicles w ith less efficiency. The rebates and fees are applied to new vehicles at the time of purchase, and the rates are set such that the total out lay for rebates equals the revenues from fees. We find that moderately -sized rebates and fees result in a substantial increase in average: f uel efficiency. Most of the effect is due to manufacturers' incorporat ing more fuel-efficiency technologies into the vehicles that they offe r, since the rebates and fees effectively Lower the price to manufactu rers of these technologies. Consumer surplus is found to rise, and the profits of domestic manufacturers are estimated to drop only slightly under most systems and actually to rise under one system. (C) 1997 El sevier Science Ltd.