2792. Driving Change: Optimizing Vehicle Scrappage Policies to Boost Consumer Participation and EV Adoption
PENDINGInvited abstract in session TD-59: Innovations for a Greener City and Sustainable Urban Logistics II, stream Transportation.
Tuesday, 14:30-16:00Room: Liberty 1.14
Authors (first author is the speaker)
| 1. | S P Sarmah
|
| Industrial & Systems Engineering, Indian Institute of Technology Kharagpur | |
| 2. | Sahil Sahil
|
| Industrial & Systems Engineering, Indian Institute of Technology Kharagpur |
Abstract
Vehicle scrappage programs (VSPs) serve a dual purpose: reducing vehicular emissions and stimulating the automobile industry. This study examines the optimal policy for consumer participation in VSPs, emphasizing the cost incurred by consumers as a key determinant of voluntary engagement. Our findings suggest that frequent drivers derive greater benefits from participation, and monetary incentives provided by policymakers encourage earlier vehicle scrappage. Additionally, we assess an optimal scrappage policy where the replacement vehicle is an electric vehicle (EV). Results indicate that replacing an aging vehicle with an EV offers a cost-efficient alternative by lowering overall vehicle lifecycle expenses. These insights provide a framework for policymakers to design effective subsidy structures that enhance consumer participation. Specifically, implementing heterogeneous subsidies—structured as a decreasing function of vehicle usage—can accelerate consumer engagement in VSPs, thereby maximizing policy effectiveness.
Keywords
- Programming, Dynamic
- Transportation
Status: accepted
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