Key Literature on Strategies to Reduce Carbon Emissions This work seeks to review some of the fairly recent strategies to reduce carbon emissions from vehicles. Are there alternatives to scrappage to reduce carbon emissions? …
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The policy was introduced by then Minister for Finance, Brian Lenihan. The Irish scrappage policy was meant to reduce the level of carbon emissions in Ireland as well as boost domestic demand. Hennessy and Tol (2011) constructed an empirical model (based on history of data) to anticipate the impact of three policies in Ireland to reduce carbon emissions. The first policy is the 2009 reform of vehicle registration and motor tax; the second policy is the electrification of transports; and the third policy is the scrappage scheme. The model sought to characterize the impact of the three policies on the Irish car stock from 2010 to 2025. Based on the empirical model developed by Hennessy and Tol, the first policy or the 2009 reform of vehicle registration and motor tax will lead to a dramatic shift in Irish vehicle stock: the main vehicle stock will be transformed from petrol to diesel cars (Hennessy and Tol 2011, p. 135). According to the model, fuel efficiency will improve with the first policy. However, although carbon emissions will be reduced, the reduction will not be substantial (Hennessy and Tol 2011, p. 135). The reduction in carbon emission through a policy of reform of vehicle registration and motor tax will be such that by 2020, Irish carbon emissions will be only roughly equal to the carbon emissions of 2007 or the carbon emissions of four years ago. ...
135). Hennessy and Tol’s model indicated that the third policy or the scrappage scheme will have little effect because it applies only to a tiny fraction of the car stock. While the Hennesy and Tol study employed their model to anticipate or project the possible impact of three policies on carbon emissions, the Rogan et al. (2011) investigated the impact of taxation on private cars proportionate to their carbon emissions based on the results after a year of the tax rate change that was started to be implemented in July 2008. According to Rogan et al. (2011), the taxation proportionate to carbon emission policy that was started to be implemented in July 2008 reduced the emissions from new cars to only 145 g/km as short as one year from the start of the implementation of the policy (Rogan et al. 2011, p. 583). According to Rogan et al., the reduction was brought about not by a decrease in engine size but by through the shift to diesel cars. However, the policy led to a 33% decrease in tax revenue equivalent to €166 million (Rogan et al. 2011, p. 583). Earlier, Giblin and McNabola (2009) attempted to anticipate the possible impact of the 2008 policy that was the subject of the Rogan et al. (2011) analysis. In contrast to the one-year after results of the policy analysis of Rogan et al. (2011), however, Giblin and McNabola anticipated or forecasted the possible impact of the policy using a model. In the Giblin and McNabola model, the carbon emission-differentiated vehicle tax system that was implemented beginning July 2008 was forecasted to result into a 3.6 to 3.8% carbon dioxide emission intensity and a reduction in tax revenue of € 191 million. Licandro and Sampayo (2005) used a mathematical car replacement model to analyze the impact of
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