Vehicle Efficiency Incentives formerly known as Feebate

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Vehicle Efficiency Incentives(formerly known as
Feebate)

• Atiyah Curmally
• Kathleen Esposito
• Brown University
• Center for Environmental Studies
• December 3, 2002

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Overview

• Received data from the DMV
• - 1,037,205 records
• Decided to use Model Year 2001
• Fields used Year, Zip code, Make, Model, Weight,
  Body type, VIN number, Class, Fuel efficiency,
  and Price

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2001 Class Distribution, RI
3.7
4.4
6.2
24.7
8.9
20.0
10.3
17.0
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US Sales vs. RI Sales
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Fuel Efficiency Profile Average Fuel efficiency
22.45 mpg
Average price 23,836 - range 9,390 - 170,779
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Fuel Efficiency Range
Best Insight _at_ 64 mpg Runner Up Prius _at_ 48
mpg (Best non-hybrid Civic _at_ 38)
Worst Hummer _at_ 9 mpg Runner Up Excursion _at_
12mpg
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Average Performers
Toyota Camry _at_ 27 mpg
Ford F-150 _at_ 16 mpg
VW Passat Wagon _at_ 23 mpg
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Distribution of Vehicles in RI
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(No Transcript)
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2-Tier Program
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8-Tier Program
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12-Tier Program
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Scenario 1

• Target 23 mpg
• Fee 500 for each mpg below the target
• Total Fees 62,481,000 collected
• Amount for administration 2,000,000
• Rebate 500 for each mpg above the target
• Total Rebates 44,099,000 rewarded
• Capped at 5,000 in each direction
• Contingency Fees 16,382,000

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Scenario 2

• Target 23 mpg
• Fee Sliding scale 2 10 on the purchase price
  based on mpg below the target
• Total Fees 39,657,286 collected
• Amount for administration 2,000,000
• Rebate Sliding scale 2 10 on the purchase
  price based on mpg above the target
• Total Rebates 13,394,853 rewarded
• Contingency Fees 24,262,433

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Scenario 3

• Target 23 mpg
• Fee Sliding scale 2 10 on the purchase price
  based on mpg below the target
• Total Fees 39,657,286 collected
• Amount for administration 2,000,000
• Rebate Redistribution of fees collected based on
  mpg above the target
• Total Rebates 28,533,355 rewarded
• Contingency Fees 9,123,931

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Changes in Data Management

• Adopt uniform system of data entry
• Year
• Make
• Model
• Fuel Efficiency
• Purchase Price
• Retain a copy of each Model years registered
  vehicles
• Use more effective VIN decoding software

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Potential Future Analysis

• Use the Tellus Stock Turnover model to see where
  RI 2001 Model registrations will need to go in
  order to attain the desired carbon reductions by
  2020

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Vehicle Efficiency Incentive Act

• Carbon emissions based
• Leased Vehicles
• Edge Effects
• Equity Concerns
• Safety Concerns
• Propose new name for the Feebate Program
• Examples
• Homeland Security Vehicle Efficiency Incentive
  Act
• Bad Examples
• Tax for Fuel Conservation (Ontario)
• An Act to Promote the Application of Scientific
  Principles and Technical Advances to Increase
  Automobile Efficiency and Reduce Global Warming
  (MA)