Economic Analysis of Feebates to Reduce Greenhouse Gas Emissions from Light Vehicles for California - Executive Summary

In California, the transportation sector consumes well over half the oil used statewide, and passenger cars and trucks emit 20 to 30 percent of the state’s global warming pollution. Vehicles therefore are a central focus of the immediate action required to reduce global warming. The state of California’s regulatory approach involves phasing in limits to average global warming emissions from passenger cars and trucks beginning in 2009 and culminating in 2016. This regulation is often called “Pavley,” after its author, Assemblywoman Fran Pavley. Another approach that could be used to enhance or replace existing regulations would be a feebates program. A feebates program creates a schedule of both fees and rebates that reflects the amount of global warming pollution that different vehicles emit. Purchasers of new vehicles that emit larger amounts of heat-trapping emissions pay a one-time surcharge at the point of purchase. These surcharges are then used to provide rebates to buyers of new vehicles that emit less pollution. This study explores the economic impacts on consumers and manufacturers of the existing Pavley regulation and a feebates program by analyzing four alternative scenarios, using information from 2002 as the base year. The author's findings show that a feebates program is an effective strategy to reduce global warming pollution by up to 25% more than Pavley alone. Also, under a feebates program consumers will save thousands of dollars and retailers will see their revenue rise by as much as 6%.

• Record URL:
  • http://hdl.handle.net/2027.42/55179
• Corporate Authors:

  University of Michigan Transportation Research Institute

  2901 Baxter Road
  Ann Arbor, MI  United States  48109-2150
• Authors:
  • McManus, Walter S
• Publication Date: 2007-5

Language

• English

Media Info

• Media Type: Web
• Features: Figures; Tables;
• Pagination: 9p

Subject/Index Terms

• TRT Terms: Air pollution; Air quality management; Economic impacts; Exhaust gases; Fees; Forecasting; Fuel oils; Global warming; Greenhouse gases; Light vehicles; Passenger vehicles; Regulation; Revenues; Savings; Trucks
• Uncontrolled Terms: Feebates; Rebates
• Geographic Terms: California
• Subject Areas: Economics; Energy; Environment; Finance; Highways; Motor Carriers; Society; I10: Economics and Administration; I15: Environment;

Filing Info

• Accession Number: 01076645
• Record Type: Publication
• Report/Paper Numbers: UMTRI-2007-19-1
• Files: TRIS
• Created Date: Sep 21 2007 1:54PM