Modelling a Zero-Emission Vehicle Standard and Subsidies in Canada’s Light-Duty Vehicle

20.500.12592/qsnq9q

Modelling a Zero-Emission Vehicle Standard and Subsidies in Canada’s Light-Duty Vehicle

16 Nov 2022

In terms of cumulative emissions compared to the baseline (2023-2035), the subsidy scenarios induce GHG reductions of 11-19 Mt in the short-term subsidy, 35-41 Mt in the medium-term subsidy, and 39- 50 Mt in the longer-term subsidy. [...] Compared to the average markup of 25% in the baseline from 2023-2035, the ZEV standard induces firms to lower the average ZEV markup to 18%. [...] In contrast, the subsidy scenarios lead to an increase in average ZEV markups to 27% c We broadly define the vehicle “Markup” as the percentage difference between the vehicle sales prices and the manufacturing costs. [...] The vehicle use under policy (Vp) is a function of the projected travel demand in the reference no policy case (V0), the elasticity parameter (e), and the changes to the fuel cost in the policy scenario relative to the reference case, given by: ? ? ? ? ? ? ? ? ? Vp= V ? 0 ( ) (9) ? ? ? ? ? ? ? ? 0 where ? ? ? ? ? ? ? ? ? is the fuel cost under policy, while ? ? ? ? ? ? ? ? 0 is the fuel cos. [...] In terms of cumulative emissions compared to the baseline (2023-2035), the subsidy scenarios induce GHG reductions of 11-19 Mt in the short-term subsidy, 35-41 Mt in the medium-term subsidy, and 39-50 Mt in the longer-term subsidy.
Pages
39
Published in
Canada

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