Featured Research

from universities, journals, and other organizations

California's Clean Car Program Would Cut Pollution, Save Drivers Money

Date:
May 24, 2007
Source:
University Of Michigan
Summary:
A market-based incentive program to reduce global warming emissions from new cars and trucks would cut pollution as much as 33 percent and provide up to $2,500 in lifetime fuel savings for drivers, according to a new study. The Clean Car Discount program creates a schedule of fees and rebates, collectively known as "feebates," based on the amount of global warming pollution different new vehicles produce.

A market-based incentive program to reduce global warming emissions from new cars and trucks would cut pollution as much as 33 percent and provide up to $2,500 in lifetime fuel savings for drivers, according to a new study by the University of Michigan's Transportation Research Institute (UMTRI).

The Clean Car Discount program creates a schedule of fees and rebates, collectively known as "feebates," based on the amount of global warming pollution different new vehicles produce.

"Our analysis shows that by harnessing the power of price signals, feebates spur consumers to purchase and manufacturers to produce cleaner vehicles," said Walter McManus, director of UMTRI's Automotive Analysis Division.

The study, "Economic Analysis of Feebates to Reduce Greenhouse Gas Emissions from Light Vehicles for California," uses the program design of The California Clean Car Discount Act (AB 493) introduced by state Assemblyman Ira Ruskin.

The bill directs the California Air Resources Board (CARB) to implement a self-financing program to provide one-time rebates for new passenger cars and trucks with low global warming pollution emissions, which are paid for by one-time point-of-purchase fees assessed on dirtier vehicles. Twenty-to-25 percent of cars and trucks, representing all vehicle types, must be included in a "zero band" that would not qualify for rebates or surcharges, according to the proposed legislation.

UMTRI's study examines the economic impact on consumers and manufacturers, as well as the resulting reductions in global warming emissions from the existing Pavley regulations and the feebates program by analyzing four alternative scenarios: 1) Pavley alone; 2) Feebates at $18 per gram of CO2-equivalent per mile; 3) Feebates at $36 per gram; and 4) Pavley plus feebates at $18 per gram. To determine the costs of reducing global warming pollution, McManus created cost curves using 39 emissions-reducing technology packages identified by CARB.

The study's findings include:

  • California's Pavley regulation alone achieves 26.7 percent reductions in greenhouse gas (GHG) emissions.
  • Pavley plus feebates at $18 per gram (of CO2 per mile) achieves 25 percent more reductions than Pavley alone.
  • Retailers' revenues rise under all scenarios. Pavley plus feebates creates the greatest increase with retailers earning $55.7 billion in revenue, a $3.5 billion (6.7 percent) increase compared to base earnings.
  • Feebates, in conjunction with Pavley or alone, boost sales of cleaner cars.
  • Consumers save as much as $2,544 under all scenarios and all vehicle types over the lifetime of their vehicles from reduced operational and fuel costs.

"We concluded that a feebates program combined with California's Pavley law is a potent policy solution to reduce global warming emissions because everyone gains—the consumer, the retailer and the environment we share," McManus said.

In California, vehicles are responsible for nearly a third of the state's total greenhouse gas emissions. Currently, there are more than 20 million passenger vehicles on California roads, with the fleet expected to grow by 1.9 million new passenger cars and trucks a year.


Story Source:

The above story is based on materials provided by University Of Michigan. Note: Materials may be edited for content and length.


Cite This Page:

University Of Michigan. "California's Clean Car Program Would Cut Pollution, Save Drivers Money." ScienceDaily. ScienceDaily, 24 May 2007. <www.sciencedaily.com/releases/2007/05/070521174955.htm>.
University Of Michigan. (2007, May 24). California's Clean Car Program Would Cut Pollution, Save Drivers Money. ScienceDaily. Retrieved April 23, 2014 from www.sciencedaily.com/releases/2007/05/070521174955.htm
University Of Michigan. "California's Clean Car Program Would Cut Pollution, Save Drivers Money." ScienceDaily. www.sciencedaily.com/releases/2007/05/070521174955.htm (accessed April 23, 2014).

Share This



More Earth & Climate News

Wednesday, April 23, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

California Drought Is Good News for Gold Prospectors

California Drought Is Good News for Gold Prospectors

AFP (Apr. 22, 2014) — For months California has suffered from a historic drought. The lack of water is worrying for farmers and ranchers, but for gold diggers it’s a stroke of good fortune. With water levels low, normally inaccessible areas are exposed. Duration: 01:57 Video provided by AFP
Powered by NewsLook.com
Raw: MN Lakes Still Frozen Before Fishing Opener

Raw: MN Lakes Still Frozen Before Fishing Opener

AP (Apr. 22, 2014) — With only three weeks until Minnesota's fishing opener, many are wondering if the ice will be gone. Some of the Northland lakes are still covered by up to three feet of ice, causing concern that just like last year, the lakes won't be ready. (April 22) Video provided by AP
Powered by NewsLook.com
Is North Korea Planning Nuclear Test #4?

Is North Korea Planning Nuclear Test #4?

Newsy (Apr. 22, 2014) — South Korean officials say North Korea is preparing to conduct another nuclear test, but is Pyongyang just bluffing this time? Video provided by Newsy
Powered by NewsLook.com
Nasa Gives You An Excuse to Post a Selfie on Earth Day

Nasa Gives You An Excuse to Post a Selfie on Earth Day

TheStreet (Apr. 22, 2014) — NASA is inviting all social media users to take a selfie of themselves alongside nature and to post it to Twitter, Facebook, Flickr, Instagram, or Google Plus with the hashtag #globalselfie. NASA's goal is to crowd-source a collection of snapshots of the earth, ground-up, that will be used to create one "unique mosaic of the Blue Marble." This image will be available to all in May. Since this is probably one of the few times posting a selfie to Twitter won't be embarrassing, we suggest you give it a go for a good cause. Video provided by TheStreet
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
 
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:  

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:  

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile iPhone Android Web
Follow Facebook Twitter Google+
Subscribe RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins