The analysis of subsidy policies for alternative fuel vehicles

The "Air Resource Co-benefits (ARCoB) Model" was developed in this study to integrated the health benefits from the reduction of criteria pollutants (the averted loss of life expectancy and annual medical expenditure) and the ecological benefits from the reduction of greenhouse gases (GHGs) (the averted carbon tax) from the promotion of the alternative fuel vehicles currently on the market. By questionnaire survey, the consumer preferences and willingness to pay for the alternative fuel vehicles in Taipei were analyzed. From cost-benefit analysis, the amount of money would be appropriate for government subsidy and reduction of the manufacturing cost for alternative fuel vehicles were suggested for the policy makers and automobile enterprises in this study. It could be a reliable reference for the subsidies policy.