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Determinants of Participation in Accelerated Vehicle-Retirement Programs

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  • Anna Alberini
  • Winston Harrington
  • Virginia McConnell

Abstract

Accelerated vehicle-retirement programs are currently being examined as one way to reduce hydrocarbon emissions. Forecasting participation rates in these programs is one of the major areas of uncertainty because the number of participants and their characteristics are likely to vary with the price offered to attract old cars. We present a theoretical model of the owner's car tenure and scrappage decision. Next, we develop and estimate an econometric model of participation in an old-vehicle scrap program using data from a recent program in the state of Delaware. We then predict participation rates at different possible offer prices.

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Bibliographic Info

Article provided by The RAND Corporation in its journal RAND Journal of Economics.

Volume (Year): 26 (1995)
Issue (Month): 1 (Spring)
Pages: 93-112

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Handle: RePEc:rje:randje:v:26:y:1995:i:spring:p:93-112

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Cited by:
  1. Böckers, Veit & Heimeshoff,Ulrich & Müller, Andrea, 2012. "Pull-forward effects in the German car scrappage scheme: A time series approach," DICE Discussion Papers 56, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  2. Macauley, Molly & Hamilton, Bruce, 1998. "Competition and Car Longevity," Discussion Papers dp-98-20, Resources For the Future.
  3. Böckers, Veit & Heimeshoff, Ulrich & Müller, Andrea, 2012. "Vorsprung durch Technik: Empirical Evidence of the German Scrappage Program," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62043, Verein für Socialpolitik / German Economic Association.
  4. Shanjun Li & Christopher Timmins & Roger H. von Haefen, 2009. "How Do Gasoline Prices Affect Fleet Fuel Economy?," American Economic Journal: Economic Policy, American Economic Association, vol. 1(2), pages 113-37, August.
  5. Naoki Wakamori, 2011. "Portfolio Considerations in Differentiated Product Purchases: An Application to the Japanese Automobile Market," Working Papers 11-27, Bank of Canada.
  6. Fullerton Don & West Sarah E, 2010. "Tax and Subsidy Combinations for the Control of Car Pollution," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-33, February.
  7. Lenski, Shoshannah M. & Keoleian, Gregory A. & Moore, Michael R., 2013. "An assessment of two environmental and economic benefits of ‘Cash for Clunkers’," Ecological Economics, Elsevier, vol. 96(C), pages 173-180.
  8. Eskeland, Gunnar S., 2000. "Environmental protection and optimal taxation," Policy Research Working Paper Series 2510, The World Bank.
  9. Fullerton, Don & West, Sarah E., 2002. "Can Taxes on Cars and on Gasoline Mimic an Unavailable Tax on Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 43(1), pages 135-157, January.
  10. Jordi Perdiguero & Juan Luis Jiménez, 2012. "“Policy options for the promotion of electric vehicles: a review”," IREA Working Papers 201208, University of Barcelona, Research Institute of Applied Economics, revised Mar 2012.
  11. Mauritzen, Johannes, 2011. "The Decision to Scrap a Wind Turbine: Opportunity Cost, Timing and Policy," Discussion Papers 2011/17, Department of Business and Management Science, Norwegian School of Economics.
  12. Chen, Jiawei & Esteban, Susanna & Shum, Matthew, 2010. "Do sales tax credits stimulate the automobile market?," International Journal of Industrial Organization, Elsevier, vol. 28(4), pages 397-402, July.
  13. Werner Antweiler & Sumeet Gulati, 2013. "Market-Based Policies for Green Motoring in Canada," Canadian Public Policy, University of Toronto Press, vol. 39(s2), pages 81-94, August.
  14. Müller, Andrea & Heimeshoff, Ulrich, 2013. "Evaluating the Causal Effects of Cash-for-Clunkers Programs in Selected Countries: Success or Failure?," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79802, Verein für Socialpolitik / German Economic Association.

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