Highlights A new traffic restriction policy exempts battery electric vehicles (BEV). The policy affects consumer choice between conventional vehicles (CV) and BEV. The policy is meaningful for emission reduction at less consumer surplus cost. Vehicle purchase tax and carbon tax are supplementary measures at different stages. Game analyses reveal the best combination of traffic restriction and taxation.
Abstract In busy metropolitan areas, traffic restrictions based on the last digits of license plates effectively ease traffic jams and improve air quality. Recently, policy-makers in China exempted battery electric vehicles (BEV) from traffic restrictions to promote their diffusion in place of conventional vehicles (CV). To examine the impacts of such an exemption on consumers and manufacturers as well as the environment, this study models the duopoly competition between BEV and CV manufacturers as a Cournot game. The numerical analyses compare three traffic restriction policies concerning BEV and CV, and reveal the pros and cons of each. In particular, the BEV-exempted policy promotes customer adoption, industry development, and environment protection with the least consumer surplus loss. As supplementary measures, relevant vehicle purchase tax and carbon tax may make such a policy more effective, respectively, in short and long terms.
Exempting battery electric vehicles from traffic restrictions: Impacts on market and environment under Pigovian taxation
Transportation Research Part A: Policy and Practice ; 154 ; 53-91
2021-09-27
39 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
Market potential of battery electric vehicles
TIBKAT | 2010
|Considerations for Exempting Spacecraft Units from Thermal Vacuum Testing
SAE Technical Papers | 2004
|Market potential of battery electric vehicles
GWLB - Gottfried Wilhelm Leibniz Bibliothek | 2010
|Medical certificates exempting motorcyclists from wearing helmets:an Australian experience
Kraftfahrwesen | 1992
|