TAILIEUCHUNG - Costs, Emissions Reductions, and Vehicle Repair: Evidence from Arizona

The idea to build small cars for the Indian market is almost as old as India’s independence. Already by the late 1950s, the Indian Government established a Commission with the task to look at costs and prices of motor vehicles produced in the country and invited proposals for the production of an ‘economy car’. In response, different manufactures submitted proposals. Tata, for example, submitted a proposal for the license production of a DKW light car. In 1959, it was Premier Automotive Limited (PAL) that was allowed to enter into collaboration with the Fiat Motor Company for the production of. | Costs Emissions Reductions and Vehicle Repair Evidence from Arizona Amy Ando Virginia McConnell Winston Harrington Discussion Paper 99-23-REV Revised October 1999 Original paper issued February 1999 RESOURCES for the future 1616 P Street NW Washington DC 20036 Telephone 202-328-5000 Fax 202-939-3460 Internet http 1999 Resources for the Future. All Rights Reserved. No portion of this paper may be reproduced without permission of the authors. Discussion papers are research materials circulated by their authors for purposes of information and discussion. They have not undergone formal peer review or the editorial treatment accorded RFF books and other publications. Costs Emissions Reductions and Vehicle Repair Evidence from Arizona Amy Ando Virginia McConnell and Winston Harrington ABSTRACT The Arizona I M program provides one of the first opportunities to examine the costs and effectiveness of vehicle emission repair. This paper examines various aspects of emission reductions fuel economy improvements and costs of repair drawing data from over 80 000 vehicles failing the I M test in Arizona between 1995 and the first half of 1996. We summarize the wealth of repair data from the Arizona program and highlight its limitations. Because missing or incomplete cost information has been a serious shortcoming for evaluation of I M programs we develop a method for estimating the costs of repair when those costs are not reported. We find surprising evidence that almost one quarter of all vehicles that take the I M test are never observed to pass the test. Using a statistical analysis we provide some information about the differences between the vehicles that pass and those that do not. Older more polluting vehicles are much more likely to never pass the I M test and their expected costs of repair are much higher than those of new cars. The paper summarizes the evidence on cost and emission reduction in the Arizona program comparing costs and emission reductions for

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