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Scrapping for clean air: Emissions savings from the BC SCRAP-IT program

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  • Antweiler, Werner
  • Gulati, Sumeet

Abstract

British Columbia׳s innovative Accelerated Vehicle Retirement program (BC SCRAP-IT) offers a unique set of incentives which are aimed at achieving a high level of emissions reductions. The program supports alternative forms of transportation: public transit, membership in ride-share or car-share programs, and/or the purchase of a bicycle. However, it is not known whether the program constitutes an efficient allocation of government funding, or how the scheme compares to more basic programs offering only cash subsidies. Using a novel dataset combining data from BC SCRAP-IT with British Columbia׳s AirCare emissions testing program, we find that BC SCRAP-IT results in substantial emissions reductions and that this type of incentives scheme compares favourably with previous subsidy-only schemes. On average, emissions reductions per vehicle are equivalent to a benefit of C$566, whereas the average program payout is C$886 per participant. We discuss policy implications and suggest a number of options to improve the efficiency of AVRP programs.

Suggested Citation

  • Antweiler, Werner & Gulati, Sumeet, 2015. "Scrapping for clean air: Emissions savings from the BC SCRAP-IT program," Journal of Environmental Economics and Management, Elsevier, vol. 71(C), pages 198-214.
    • Handle: RePEc:eee:jeeman:v:71:y:2015:i:c:p:198-214
    DOI: 10.1016/j.jeem.2015.03.002
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    References listed on IDEAS

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    1. Alberini, Anna & Harrington, Winston & McConnell, Virginia, 1996. "Estimating an Emissions Supply Function from Accelerated Vehicle Retirement Programs," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 251-265, May.
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    Cited by:

    1. Alberini, Anna & Bareit, Markus & Filippini, Massimo & Martinez-Cruz, Adan L., 2018. "The impact of emissions-based taxes on the retirement of used and inefficient vehicles: The case of Switzerland," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 234-258.
    2. Nishitateno, Shuhei & Burke, Paul J., 2021. "Willingness to pay for clean air: Evidence from diesel vehicle registration restrictions in Japan," Regional Science and Urban Economics, Elsevier, vol. 88(C).
    3. Marin, Giovanni & Zoboli, Roberto, 2020. "Effectiveness of car scrappage schemes: Counterfactual-based evidence on the Italian experience," Economics of Transportation, Elsevier, vol. 21(C).
    4. Brian R. Copeland & M. Scott Taylor, 2017. "Environmental and resource economics: A Canadian retrospective," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1381-1413, December.

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    More about this item

    Keywords

    Accelerated Vehicle Retirement programs; Vehicle emissions; Voluntary environmental programs;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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