Abstract Air quality degradation is closely linked to the transportation sector in the Arab region. In Lebanon’s capital, Beirut, levels of many transport-related pollutants are several times higher than world norms. In this paper, we elicit motorists’ propensity to purchase hybrid-electric vehicles (HEVs) in Beirut by means of a choice experiment, and monetize attendant financial, welfare and environmental benefits. Simulations of aggregate switching behavior revealed that under a transitional scenario which assumes that HEVs are exempt from customs and excise duties (recently proposed, yet unimplemented, by the Ministry of Finance), car buyers would enjoy a 30.5 percent reduction in fuel consumption, 20.5 percent CO2 emission reduction and net benefits of $5684 per brand new car sale per year. Simulations of a more sustainable scenario in which customs and excise duties are reduced by around 38 percent reveal equally significant gains, with aggregate yearly fuel cost savings of $18.66 million and CO2 emissions reductions of 23,100 tons. Accordingly, endorsing the proposed tax amendments could be crucial to establishing a viable HEV market in Lebanon, later to be followed by a more sustainable tax incentive scheme consisting of partial tax discounts that would provide a win-win situation for both government and vehicle buyers.
Highlights We elicit motorists’ propensity to buy hybrid-electric (HEV) cars in Beirut, Lebanon. We monetize financial, welfare and environmental benefits attendant to buying HEV’s. We simulate aggregate purchases of HEV’s under various tax incentive schemes. Customs and excise duty exemptions would be crucial to establish a viable HEV market. This could be followed by more sustainable partial tax discounts for the longer-run.
Harnessing motorists’ potential demand for hybrid-electric vehicles in Lebanon: Policy options, CO2 emissions reduction and welfare gains
Transport Policy ; 42 ; 144-155
2015-06-02
12 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
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