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Simulating the controllability of feebates
Author(s) -
Ford Andrew
Publication year - 1995
Publication title -
system dynamics review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.491
H-Index - 57
eISSN - 1099-1727
pISSN - 0883-7066
DOI - 10.1002/sdr.4260110103
Subject(s) - controllability , system dynamics , computer science , state (computer science) , operations research , automotive engineering , business , environmental economics , engineering , economics , artificial intelligence , mathematics , algorithm
System dynamics is used to simulate the impact of feebates to encourage the sale of cleaner vehicles in southern California. With a feebate system, fees would be imposed on dirty vehicles to finance rebates for clean vehicles. The model is used to learn whether the State of California could operate a feebate system in a financially prudent manner. I consider an example in which fees are imposed on conventional vehicles, and rebates are used to encourage the sale of electric vehicles. The simulations show that feebates can be controlled despite the many uncertainties in predicting the future sales of both conventional and electric vehicles.