A study of a feebate policy aimed at vehicle manufacturers to reduce CO2 emissions
CITATION: Du Plooy, J. & Nel, R. 2012. A study of a feebate policy aimed at vehicle manufacturers to reduce CO2 emissions. International Business and Economics Research Journal, 11(9):1029-1040, doi:10.19030/iber.v11i9.7186.
The original publication is available at https://www.cluteinstitute.com/journals/international-business-economics-research-journal-iber
As part of environmental fiscal reform, the South African government introduced a vehicle emission tax during 2010. However, the design of this tax focuses on consumers and might not be as effective in reducing CO2 emissions. A feebate policy is considered as a possible alternative to reduce CO2 emissions. A literature review was performed on the topic of feebate policies that could encourage vehicle manufacturers to invest in energy-efficient technology aimed at reducing CO2 emissions. Based on the literature review a questionnaire was developed and distributed to nine vehicle manufacturers in South Africa. The study specifically focused on vehicle manufacturers as they have the opportunity to design, develop and introduce energy-efficient technology that could reduce CO2 emissions. Results suggest that a feebate policy (that leads to cost savings) is an alternative that could be considered to encourage vehicle manufacturers to invest in energy-efficient technology in order to reduce CO2 emissions.