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Response of the Market for New Cars to Emission Standards: The case of PROCONVE

Grant number: 16/05979-3
Support type:Scholarships abroad - Research
Effective date (Start): August 01, 2016
Effective date (End): January 31, 2017
Field of knowledge:Applied Social Sciences - Economics - Industrial Economics
Principal researcher:Cláudio Ribeiro de Lucinda
Grantee:Cláudio Ribeiro de Lucinda
Host: Antonio Miguel Ramos Bento
Home Institution: Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto (FEARP). Universidade de São Paulo (USP). Ribeirão Preto , SP, Brazil
Research place: University of Southern California (USC), United States  

Abstract

The aim of this research project is to study the responses of both consumers and producers to changes in emission stantards to new cars in Brazil (PROCONVE). This is a specially important subject, considering there is a clear increase in the motorization rate as per capita income increase, as well as the high share of energy consumption of light vehicle in total transportation energy demand. In order to do so, we intend to estimate a demand function for new vehicles as well as the technologigal relations between emissions and automobile characteristics. From these estimates, it is expected to simulate effects on pollution from three scenarios, (i) tighter emission standards in PROCONVE, (ii) the creation of a feebate mechanism, in which less polluting cars are subsidized by higher emission cars and (iii) increase in fuel prices.

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