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Analysis of Feebate Design In Rhode Island

Analysis of Feebate Design In Rhode Island. Revenue Neutrality Average sales tax revenues should be 7% feebate from 0-14%, –7% to +21% (assuming uniform sales) or some other combination such that weighted mid-point is 7% Feebate=(Vm)*(M-Mo) Correct for administrative costs. Design (cont.).

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Analysis of Feebate Design In Rhode Island

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  1. Analysis of Feebate Design In Rhode Island • Revenue Neutrality • Average sales tax revenues should be 7% • feebate from 0-14%, –7% to +21% (assuming uniform sales) or some other combination such that weighted mid-point is 7% • Feebate=(Vm)*(M-Mo) • Correct for administrative costs

  2. Design (cont.) • Only GHGs or GHGs and CAPs? • Rationale • How to weight each • Caps onfeebates? • Cheap highly efficient vehicles or equity concerns • Feebates separated by weight class? • Perverse impacts

  3. Design (cont.) • Leakage, consumer equity, legal issues, etc. • How to prevent buyers from moving across the border to purchase their vehicles? • How to ensure fairness? • Maryland proposal withdrawn on the basis of federal challenge; legality untested.

  4. Feebate Programs

  5. Feebate Programs (cont.)

  6. Vehicle Data

  7. Feebate Comparisons for Some Representative Vehicle Choices Class Vehicle City Gas Mileage in mpg Typical Retail Price in $ Fee or rebate (-) in $ Wagon Compact Toyota Prius (1.5L) 52 20,475 -1,262 VW Jetta (2.0L) 22 18,125 33 SUV Small SUV Toyota RAV4 (2.0L) 25 16,365 -272 Jeep Wrangler (2.5L) 16 15,475 511 Saturn LW300 (3.0L)--79 cu.f cargo capacity 20 22,105 -141 Ford Explorer (4.0L)—79.8 cu.f cargo capacity 16 25,810 128 Highest Rebate: Medium Pickup Ford Ranger Electric n.a. ~30,000 -1,845 GMC C2500 Sierra 11 28,219 1875 Highest Fee: Large Pickup

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