Economic incentives to mitigate impacts of state low-emission vehicle standard for heavy-duty vehicles

Economic incentive concepts that might reduce the likelihood that heavy-duty vehicle (HDV) operators will move their base operations out of California as a result of potential low-emission standards for HDVs based in the state are examined. In particular, 11 economic incentives that fall into the categories of rebates, taxes and fees, loans, and trading measures are examined. The results support the adoption of a fee-bate system under which registration fees would be based on the emission contributions of HDVs. Such a system could be applied to in-state and out-of-state HDVs, thereby eliminating the incentive for operators to relocate outside California while encouraging the purchase and use of low-emission HDVs.