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

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