OTREC Events

OSU Seminar: Clearing the Air by Promoting Hybrids?

Oregon State University is pleased to welcome Dr. Antonio Bento, a professor of Applied Economics at Cornell University in Ithaca, New York. His talk is entitled, "Clearing the Air by Promoting Hybrids? The Unintended Consequences of Allowing Solo-Hybrid Drives in High Occupancy Lanes."

When: Friday, May 20, 2011 - 3:30 - 5:00 p.m.
Where: Oregon State University, 200C Ballard Extension Hall
Who: Free and open to the public

Abstract:
This paper examines the overall welfare effects and distributional impacts of the Clean Air Stickers program in California. In an attempt to promote the penetration of hybrids in the vehicle fleet and reduce greenhouse gas emissions, this program allowed solo drivers of 85,000 low-emission vehicles, predominately hybrid-electric vehicles, to access to high-occupancy vehicle (HOV) lanes. Using a regression discontinuity design, we estimate the effect of the Clean Air Stickers program on HOV lane congestion, mainline congestion, and hybrid vehicle registration. We show that across specifications, travel time in the HOV lane increased significantly, while mainline travel times remained steady. Furthermore, we find no evidence that this policy stimulated registration of hybrid vehicles, and as a consequence, greenhouse gas emissions may have actually increased. Finally, we find that regardless of the effect of the program on new hybrid registration, because congestion costs dominate potential GHG emissions savings, the policy fails to pass a simple benefit-cost test. Even under our most
optimistic scenario, the cost per ton of GHG emissions reduction, is substantially larger that the most costly available options to the regulator. Further, by promoting the penetration of the hybrid technology at the expense of increased travel time for carpoolers, this program was highly regressive. We estimate that it costs 9 dollars to transfer one dollar to hybrid owners.

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