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Estimating an Emissions Supply Function from Accelerated Vehicle Retirement Programs

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  • Alberini, Anna
  • Harrington, Winston
  • McConnell, Virginia

Abstract

Local authorities and industries seeking to reduce emissions and improve air quality have shown interest in programs that offer to purchase and retire old, high-polluting vehicles. We analyze the results from an experimental vehicle retirement program in Delaware, during which selected pre-1980 vehicle owners were offered $500 for their vehicles and surveyed about vehicle characteristics, value and use. With this unique data set we estimate the relationship between the owner's reservation price and the expected remaining life of the vehicle to derive a supply curve for emissions reductions, which predicts the emissions reductions as a function of the offer made to eligible vehicles in a scrappage program. Copyright 1996 by MIT Press.

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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 78 (1996)
Issue (Month): 2 (May)
Pages: 251-65

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Handle: RePEc:tpr:restat:v:78:y:1996:i:2:p:251-65

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Web page: http://mitpress.mit.edu/journals/

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Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

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  1. Cash for clunkers
    by Daniel Hall in common tragedies on 2009-01-30 19:40:50
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Cited by:
  1. Lumbreras, J. & Valdés, M. & Borge, R. & Rodriguez, M.E., 2008. "Assessment of vehicle emissions projections in Madrid (Spain) from 2004 to 2012 considering several control strategies," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 42(4), pages 646-658, May.
  2. Mark Hoekstra & Steven L. Puller & Jeremy West, 2014. "Cash for Corollas: When Stimulus Reduces Spending," NBER Working Papers 20349, National Bureau of Economic Research, Inc.
  3. 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, Verein für Socialpolitik / German Economic Association 79802, Verein für Socialpolitik / German Economic Association.
  4. 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.
  5. Kavalec, Chris & Setiawan, Winardi, 1997. "An analysis of accelerated vehicle retirement programs using a discrete choice personal vehicle model," Transport Policy, Elsevier, vol. 4(2), pages 95-107, April.
  6. Iwata, Kazuyuki & Arimura, Toshi, 2008. "Economic Analysis of a Japanese Air Pollution Regulation: An Optimal Retirement Problem under Vehicle Type Regulation in the NOx–Particulate Matter Law," Discussion Papers, Resources For the Future dp-08-15, Resources For the Future.
  7. Jie Lin & Cynthia Chen & Debbie Niemeier, 2008. "An analysis on long term emission benefits of a government vehicle fleet replacement plan in northern illinois," Transportation, Springer, Springer, vol. 35(2), pages 219-235, March.
  8. Harrington, Winston & McConnell, Virginia & Alberini, Anna, 1998. "Fleet Turnover and Old Car Scrap Policies," Discussion Papers, Resources For the Future dp-98-23, Resources For the Future.
  9. Pancholy, Nishita & Thomas, Michael H. & Solís, Daniel & Stratis, Nicholas, 2011. "The impact of biofuels on the propensity of land-use conversion among non-industrial private forest landowners in Florida," Forest Policy and Economics, Elsevier, Elsevier, vol. 13(7), pages 570-574, September.
  10. Stavins, Robert, 2005. "The Effects of Vintage-Differentiated Environmental Regulation," Working Paper Series, Harvard University, John F. Kennedy School of Government rwp05-031, Harvard University, John F. Kennedy School of Government.
  11. Tomohara, Akinori & Xue, Jian, 2009. "Motorcycles retirement program: Choosing the appropriate regulatory framework," Journal of Policy Modeling, Elsevier, Elsevier, vol. 31(1), pages 126-129.
  12. West, Sarah E., 2004. "Distributional effects of alternative vehicle pollution control policies," Journal of Public Economics, Elsevier, Elsevier, vol. 88(3-4), pages 735-757, March.
  13. Yamamoto, Toshiyuki & Madre, Jean-Loup & Kitamura, Ryuichi, 2004. "An analysis of the effects of French vehicle inspection program and grant for scrappage on household vehicle transaction," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 38(10), pages 905-926, December.
  14. Werner Antweiler & Sumeet Gulati, 2013. "Market-Based Policies for Green Motoring in Canada," Canadian Public Policy, University of Toronto Press, University of Toronto Press, vol. 39(s2), pages 81-94, August.
  15. Lorentziadis, Panos L. & Vournas, Stylianos G., 2011. "A quantitative model of accelerated vehicle-retirement induced by subsidy," European Journal of Operational Research, Elsevier, Elsevier, vol. 211(3), pages 623-629, June.
  16. Sandström, F. Mikael, 2003. "Car Age, Taxation, Scrappage Premiums and the ELV Directive," Working Paper Series, Research Institute of Industrial Economics 591, Research Institute of Industrial Economics.
  17. 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, Elsevier, vol. 96(C), pages 173-180.

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