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Abstract

This article explains an application of computer simulation tostudy the impact of a feebate proposal in which fees would be imposed on dirty vehicles to finance rebates for clean vehicles. Feebates are examined for the case of the south coast air basin in southern California which suffers from dangerously high levels of ozone concentration. The article describes a system dynamics model designed to simulate the impact of a variety of incentiveprograms that could lead togreatersales and use of electric vehicles. Simulation results are presen ted when the model is opera ted in a s tep-by- step manner from a special cockpit designed with theMicroWorlds Creator. The simulations address the question of whether a feebate system could be con trolled by the state official who would be charged with running the program in a financially prudent manner. The simulations demonstrate that feebates can be controlled by a backward looking strategy despite the many uncertainties in the system. The feebate strategy is then tested to learn if it is possible to maintain control over time even if consumer attitudes toward alternative vehicles turn out to be different from the attitudes expressed in recent surveys. The paper concludes with a discussion of the transferability of the results followed by a discussion of the "Mission Earth" initiative.

Keywords

System Dynamics electric vehicles air pollution California

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Maintaining Control of a Feebate System

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