We analyze a fuel automobile (FA) supply chain and an electric-and-fuel automobile (EA-FA) supply chain in a duopoly setting, under a government’s subsidy incentive scheme that is implemented to promote the electric automobile (EA) for the control of air pollution. Benefiting from such a scheme, each EA consumer can enjoy a subsidy from the government. We show that the incentive scheme is more ...

The mathematical programming technique Data Envelopment Analysis is used to test the hypothesis of Averch and Johnson that utility regulation leads to overuse of capital. The regulated firm earns a return s greater than its cost of capital r, an implicit capital subsidy resulting in allocative inefficiency. Technical and Allocative inefficiency are based on Cost and Production Frontiers from 33...

We evaluated several variants of a variable biofuel subsidy and compared them with the fixed subsidy and Renewable Fuel Standard. We used two different modeling approaches. First we used a partial equilibrium model encompassing crude oil, gasoline, ethanol, corn, and ethanol by-products. Second, we used a stochastic simulation model of a prototypical ethanol plant. From the partial equilibrium ...

Since fossil fuel subsidies entail significant economic, fiscal, social and environmental costs, more and more attention is being paid to phasing out fossil fuel subsidies. The OECD has recently completed a report quantifying the amount of both producer and consumer subsidies for their member countries, and some work has been implemented on analyzing the effects of consumer subsidy removal. How...

Kerosene subsidy reform is a key policy concern in India and other developing countries. As kerosene is widely used for lighting in India, any price changewill likely have considerable public welfare impacts on the large fraction of the poorwho do not have access to reliable electricity supply for lighting. In this study, we assess historic kerosene use for residential lighting across populatio...

Despite widespread agreement that a carbon tax would be more efficient, many countries use fuel economy standards to reduce transportation-related carbon dioxide emissions. We pair a simple model of the automakers’ profit maximization problem with unusually-rich nationally representative data on vehicle registrations to estimate the distributional impact of U.S. fuel economy standards. The key ...

Considerable effort is being made to reduce the primary energy consumption in buildings. As part of this effort, fuel cell systems are attracting attention as a new/renewable energy systems for several reasons: (i) distributed generation system; (ii) combined heat and power system; and (iii) availability of various sources of hydrogen in the future. Therefore, this study aimed to develop an eco...

It is often argued that fossil fuel subsidies hamper the transition towards a sustainable energy supply as they incentivize wasteful consumption. We assess implications of a subsidy phase‐ out for the mitigation of climate change and the low‐carbon transformation of the energy system, using the global energy–economy model REMIND. We compare our results with those obtained by the International E...

This paper proposes a total cost of ownership (TCO) model for battery sizing of plug-in hybrid electric vehicles (PHEVs). The proposed systematic TCO model innovatively integrates the Beijing driving database and optimal PHEV energy management strategies developed earlier. The TCO, including battery, fuel, electricity, and salvage costs, is calculated in yearly cash flows. The salvage cost, bas...