Feebate

From DDWiki

A feebate is a policy to strengthen the market for environmentally preferable vehicles by charging a fee or paying a rebate to purchasers, depending on environmental performance and fuel efficiency of the vehicles. Policy priorities will shape a feebate: whether it targets greenhouse gas emission, oil consumption, or criteria pollutant emission; the selection of the set of subject vehicles; revenue objectives; manufacturer impacts: and equity.

1 Status in US states, Canada and Europe (2005)
2 Calculating Feebate
3 Manufacturer Impact
4 References

Status in US states, Canada and Europe (2005)

Connecticut

A bill was signed directing the Commissioner of Environmental Protection to “develop a plan for the implementation” of a feebate by Governor in June 2005. Based on their emission of greenhouse gases, the plan allows an increase or decrease of up to 3% in the state sales tax on vehicles. The Commissioner is required to consult with stakeholders, including the auto industry, in developing a plan that is to be submitted to the General Assembly by the start of year 2006.[1]

Here is the text of the bill[2]

District of Columbia

In 2004, the D.C. Council raised from 7 to 8% the excise tax on "luxury" SUVs, defined as those weighing 5000pounds or more, and increased registration fees for these vehicles by $40. Fees for hybrids were reduced by comparable amounts.[1]

Maine

Bill LD305 was introduced in 2005. This bill levy a 5% surcharge on the purchase or lease of a new vehicle that does not achieve 27.5 MPG (CAFE Standard). It failed in the Senate in March 2005.[1]

Massashusetts

Here is the text of the bill[3]

North Carolina

Senator Jenkins introduced Bill 1038, Mobile source Emissions Reduction Program. This program would charge vehicles a registration fee based on miles traveled, emissions of pollutants, and fuel consumption. The bill was sent to the Agricultural/Environmental/Natural Resource Committee in March 2005. The legislative session us nearly over, and the bill will not be acted upon in 2005.

Here is the text of the bill[4]

Rhode Island

In 2003 and 2004 legislative session, bills to establish a feebate based on carbon dioxide emissions were introduced, however, they did not pass. The 2004 bill set an initial rate of $2400 per pound of carbon dioxide per mile (approximately $470 per gallon per mile for gasoline vehicle) and a pivot point of 0.78lbs. per mile (approximately 25.1 miles per gallon, using combined city/highway fuel economy adjusted by EPA). The pivot point was set at a level that require well over half of all vehicles to pay a fee.[1]

In 2005, no bill related to feebate was introduced.

Here is the text of the bill[5]

Canada

For many years, feebates have been under consideration at the national level in Canada. In March 2005, the government has announced its intention to investigate adoption of a feebate to complement an agreement reached with automakers on carbon dioxide reduction. The National Round Table on the Environment and the Economy has been asked to develop feebate options for the next budget cycle. The government is also interested in extending the concept of feebates beyond vehicles to home appliances.

Here is the text of their budget plan[6]

The feebate in Ontario, several commentators regard the program as ineffectual (Bernow 2002; Lovins et al. 2004; Michaelis 1997). Such flaws as[1]:

- The program is invisible to consumers

- The vast majority of vehicles fall in the range of a $75 tax to $100 rebate. Due to small amount of fee and rebate the program is not very influential.

- Many high-emitting vehicles are not covered by the program.

E.U.

In France, the environment ministry proposed a feebate. The fee is based on carbon dioxide emissions, ranging from a fee of €3500 to a rebate of €700.[1]

Calculating Feebate

Feebate

Feebate system consists of a 'pivot point' and a 'rate'. The pivot point $E o$ , is the fuel economy level (in MPG) below which fees are paid and above which rebates are received. $R$ represents the rate which is constant specified in units of dollar per GPM (per 100 miles in this Eq.). Size of rate determines how large th fee or rebate for any particular fuel economy level will be. The feebate with single pivot point, $F$ , for a vehicle getting $E$ MPG would be the following:

$F=R(\frac{1}{E_o}-\frac{1}{E})$

Equation for feebate with double or more pivot points use separate equation. However, we could not find equation yet.

Fuel Saving

The value of fuel savings is calculated as a discounted present value over some portion of the vehicle's expected lifetime.

$V=\int_{t=0}^{L}P_tMe^{nt}(\frac{1}{E_o}-\frac{1}{E_o(1+x)})e^{-rt}dt$

$V$ is the present value of fuel savings, $L$ the effective vehicle lifespan in years, $P$ the price of gasoline in dollars per gallon, $M$ the annual miles traveled by a typical vehicle, n the annual rate of decline in vehicle miles with vehicle age, $r$ the consumer's required rate of return on an investment in fuel economy, $t$ the time (in years) and $x$ the fuel economy increase as a fraction of vase year MPG ( $E o$ ).

Pivot Point

The pivot point is the sakes weighted average fuel economy, which is calculated using the following equation:

$E_o=\sum_{i}^n fe_i * ts_i$

$E o$ is the pivot point fuel economy (mpg), $n$ is the number of vehicles in class, $f e$ is fuel economy of individual vehicle I (mpg) and $t s$ is total number of vehicle $i$ sold.

Manufacturer Impact

Fees and Rebates for Most Popular Vehicles and Hybrids at $1000 per 0.01 Gallons per Mile

This article has been marked as incomplete and requiring attention. You can help DDWiki by expanding it.

What is the R and E_0 for this table, and whose government policy does it represent? Also, how is the double-pivot point calculated.

Cars	Type	Est. MPG (lab55/45)	Single pivot point	Separate car and truck pivot points
Toyota	Camry	31.4	$880	$275
Honda	Accord	30.7	$808	$203
Honda	CIvic	38.9	$1,494	$890
Nissan	ALtima	29.8	$709	$105
Chevrolet	Impala	28.1	$506	-$99
Toyota	Collora	39.0	$1,501	$896
Ford	Taurus	26.3	$263	-$342
Chevrolet	Cobalt	33.1	$1,044	$439
Chevrolet	Malibu	31.0	$839	$234
Ford	Focus	32.9	$1,026	$431
Toyota	Prius	65.8	$2,545	$1,940
Honda	Civic Hybrid	56.3	$2,289	$1,684

Trucks	Type	Est. MPG (lab55/45)	Single pivot point	Separate car and truck pivot points
Ford	F-150	18.2	-$1198	-$568
Chevrolet	Silverado	19.1	-$743	-$113
Dodge	Ram	17.5	-$1,370	-$740
Ford	Explorer	18.3	-$1,143	-$513
Dodge	Caravan	24.8	$33	-$633
GMC	Sierra	19.2	-$743	-$113
Chevrolet	TrailBlazer	18.4	-$1,116	-$487
Jeep	Grand Cherokee	20.5	-$630	$0
Chrysler	Town & Country	24.3	-$50	$580
Honda	Odyssey	25.7	$174	$804
Ford	Escape Hybrid	36.7	$1,533	$2,163