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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.

Suggested Citation

  • 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.
    • Handle: RePEc:tpr:restat:v:78:y:1996:i:2:p:251-65
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    1. Cash for clunkers
      by Daniel Hall in common tragedies on 2009-01-31 01:40:50

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    1. Lorentziadis, Panos L. & Vournas, Stylianos G., 2011. "A quantitative model of accelerated vehicle-retirement induced by subsidy," European Journal of Operational Research, Elsevier, vol. 211(3), pages 623-629, June.
    2. 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.
    3. 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).
    4. 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, vol. 42(4), pages 646-658, May.
    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. Mark Hoekstra & Steven L. Puller & Jeremy West, 2017. "Cash for Corollas: When Stimulus Reduces Spending," American Economic Journal: Applied Economics, American Economic Association, vol. 9(3), pages 1-35, July.
    7. Müller, Andrea & Heimeshoff, Ulrich, 2013. "Evaluating the Causal Effects of Cash-for-Clunkers Programs in Selected Countries: Success or Failure?," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79802, Verein für Socialpolitik / German Economic Association.
    8. Stavins, Robert, 2005. "The Effects of Vintage-Differentiated Environmental Regulation," Working Paper Series rwp05-031, Harvard University, John F. Kennedy School of Government.
    9. West, Sarah E., 2004. "Distributional effects of alternative vehicle pollution control policies," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 735-757, March.
    10. 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, vol. 13(7), pages 570-574, September.
    11. 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," RFF Working Paper Series dp-08-15, Resources for the Future.
    12. Alberini, Anna & Harrington, Winston & McConnell, Virginia D., 1998. "Fleet Turnover and Old Car Scrap Policies," Discussion Papers 10897, Resources for the Future.
    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, vol. 38(10), pages 905-926, December.
    14. Laborda, Juan & Moral, María J., 2019. "Scrappage by age: Cash for Clunkers matters!," Transportation Research Part A: Policy and Practice, Elsevier, vol. 124(C), pages 488-504.
    15. Junji Xiao & Xiaolan Zhou & Wei‐Min Hu, 2017. "Welfare Analysis Of The Vehicle Quota System In China," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 58(2), pages 617-650, May.
    16. BenDor, Todd & Ford, Andrew, 2006. "Simulating a combination of feebates and scrappage incentives to reduce automobile emissions," Energy, Elsevier, vol. 31(8), pages 1197-1214.
    17. 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, vol. 35(2), pages 219-235, March.
    18. 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.
    19. 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.
    20. Tomohara, Akinori & Xue, Jian, 2009. "Motorcycles retirement program: Choosing the appropriate regulatory framework," Journal of Policy Modeling, Elsevier, vol. 31(1), pages 126-129.
    21. 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.
    22. Balaguer, Jacint & Pernías, José C. & Ripollés, Jordi, 2023. "Is vehicle scrapping affected by low-emission zones? The case of Madrid," Transportation Research Part A: Policy and Practice, Elsevier, vol. 172(C).
    23. Kazuyuki Iwata & Toshi H. Arimura & Tetsuya Shimane, 2014. "The effectiveness of vehicle emission control policies: Evidence from Japanese experience," Working Papers e077, Tokyo Center for Economic Research.
    24. Sandström, F. Mikael, 2003. "Car Age, Taxation, Scrappage Premiums and the ELV Directive," Working Paper Series 591, Research Institute of Industrial Economics.
    25. 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.

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