Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Hybrid vehicle rebates produce scant environmental benefits, high cost

06.08.2009
Despite major costs to taxpayers in the U.S. and Canada, government programs that offer rebates to hybrid vehicle buyers are failing to produce environmental benefits, a new UBC study says.

The study finds that hybrid sales have come largely at the expense of small, relatively fuel-efficient, conventional cars, rather than large SUVs, trucks and vans, which produce substantially greater carbon emissions.

"If the intention of rebate programs is to replace gas guzzlers with hybrids, they are failing," says Ambarish Chandra, a professor at UBC's Sauder School of Business and study co-author. He says large vehicle sales have risen steadily since the introduction of hybrid rebates.

"People are choosing hybrids over similarly priced small- and medium-sized conventional cars, which are not far behind hybrids for fuel efficiency and emissions," says Chandra. "The reductions in carbon emissions are therefore not great."

The study also finds that the majority of consumers who purchase hybrids were not motivated to do so by government rebates, says Chandra, whose co-authors include Sumeet Gulati, assistant professor in UBC's Dept. of Food and Resource Economics, and Milind Kandlikar of UBC's Liu Institute for Global Issues and Institute of Asian Research.

"Our estimates indicate that two-thirds of people who buy hybrids were going to buy them anyway," says Chandra. "So for the majority, rebates are not changing behaviour – they are subsidizing planned purchases."

According to the study, the inefficiency of rebate programs rises disproportionately when governments increase rebate levels. "When B.C.'s rebate jumped from $1,000 to $2,000 in 2005, the actual cost of reducing carbon emissions more than doubled," he says, noting that Ontario recently increased its rebate to a maximum of $10,000 per hybrid vehicle.

The study finds that Canadian provinces that offer rebates have spent an average of $195 per tonne of carbon saved or, equivalently, $0.43 for every litre of gasoline that a vehicle consumes over its 15 year average life expectancy.

Chandra says that governments could garner greater environmental benefits by purchasing carbon offsets (currently priced between $3 and $40 per tonne on carbon markets) or investing in green jobs and technologies.

While hybrid rebates help governments to appear environmentally progressive, Chandra suggests that some programs may serve as de facto "bailouts" for the North American auto industry.

"The criteria for Ontario's recent rebate increase seem designed to benefit domestic manufacturers, especially General Motors," Chandra says. "The biggest rebates will be given to purchasers of the Chevy Volt, rather than other hybrids like the Toyota Prius."

Hybrid rebate programs are currently offered by the governments of the U.S. and 13 states, including Washington, Oregon, Illinois and Colorado, and five Canadian provinces, including B.C., Ontario, Quebec, PEI and Manitoba. The Canadian government offered hybrid rebates during 2007-2008.

Researchers used Canadian vehicle sales data over a 17-year period from 1989 to 2006. Results are believed to extend to the U.S. market, given the similarities between auto industries, in terms of vehicle buying patterns, pricing structures and car models.

Basil Waugh | EurekAlert!
Further information:
http://www.ubc.ca
http://www.publicaffairs.ubc.ca/download

More articles from Studies and Analyses:

nachricht Study relating to materials testing Detecting damages in non-magnetic steel through magnetism
23.07.2018 | Technische Universität Kaiserslautern

nachricht Innovative genetic tests for children with developmental disorders and epilepsy
11.07.2018 | Christian-Albrechts-Universität zu Kiel

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Color effects from transparent 3D-printed nanostructures

New design tool automatically creates nanostructure 3D-print templates for user-given colors
Scientists present work at prestigious SIGGRAPH conference

Most of the objects we see are colored by pigments, but using pigments has disadvantages: such colors can fade, industrial pigments are often toxic, and...

Im Focus: Unraveling the nature of 'whistlers' from space in the lab

A new study sheds light on how ultralow frequency radio waves and plasmas interact

Scientists at the University of California, Los Angeles present new research on a curious cosmic phenomenon known as "whistlers" -- very low frequency packets...

Im Focus: New interactive machine learning tool makes car designs more aerodynamic

Scientists develop first tool to use machine learning methods to compute flow around interactively designable 3D objects. Tool will be presented at this year’s prestigious SIGGRAPH conference.

When engineers or designers want to test the aerodynamic properties of the newly designed shape of a car, airplane, or other object, they would normally model...

Im Focus: Robots as 'pump attendants': TU Graz develops robot-controlled rapid charging system for e-vehicles

Researchers from TU Graz and their industry partners have unveiled a world first: the prototype of a robot-controlled, high-speed combined charging system (CCS) for electric vehicles that enables series charging of cars in various parking positions.

Global demand for electric vehicles is forecast to rise sharply: by 2025, the number of new vehicle registrations is expected to reach 25 million per year....

Im Focus: The “TRiC” to folding actin

Proteins must be folded correctly to fulfill their molecular functions in cells. Molecular assistants called chaperones help proteins exploit their inbuilt folding potential and reach the correct three-dimensional structure. Researchers at the Max Planck Institute of Biochemistry (MPIB) have demonstrated that actin, the most abundant protein in higher developed cells, does not have the inbuilt potential to fold and instead requires special assistance to fold into its active state. The chaperone TRiC uses a previously undescribed mechanism to perform actin folding. The study was recently published in the journal Cell.

Actin is the most abundant protein in highly developed cells and has diverse functions in processes like cell stabilization, cell division and muscle...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

LaserForum 2018 deals with 3D production of components

17.08.2018 | Event News

Within reach of the Universe

08.08.2018 | Event News

A journey through the history of microscopy – new exhibition opens at the MDC

27.07.2018 | Event News

 
Latest News

Smallest transistor worldwide switches current with a single atom in solid electrolyte

17.08.2018 | Physics and Astronomy

Robots as Tools and Partners in Rehabilitation

17.08.2018 | Information Technology

Climate Impact Research in Hannover: Small Plants against Large Waves

17.08.2018 | Life Sciences

VideoLinks
Science & Research
Overview of more VideoLinks >>>