ECONOMIC ANALYSIS OF REPLACEMENT OF OLDER PETROL PASSENGER VEHICLES IN IRAN

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SALAHI J.; MALEKPOUR SEPIDEH

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Journal: ENERGY ECONOMICS REVIEW Year:2009 | Volume:6 | Issue:20 Page(s): 161-185

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Title

ECONOMIC ANALYSIS OF REPLACEMENT OF OLDER PETROL PASSENGER VEHICLES IN IRAN

Author(s)

SALAHI J. | MALEKPOUR SEPIDEH | Issue Writer Certificate

Keywords

OLD VEHICLEQ3

LIGHT DUTY PASSENGER VEHICLE FLEETQ3

FUEL SAVINGQ3

IRANQ2

Abstract

The transport sector is a major consumer of energy sources, particularly oil products. Two of the reasons for the high consumption of petrol by fuel inefficient passenger cars are the relatively low prices of petrol compared to international prices and the old age of the vehicle fleet. The subsidy paid per liter of fuel in 1386 was 4,394 Rials, which is a significant amount. This paper assesses the cost-benefit of replacing older petrol vehicles under five different scenarios. The first scenario assesses the cost-benefit outcome of retiring older light-duty vehicles without official support for their replacement by new vehicles. This scheme, while attractive for the government is not viable as it does not recommend any replacement methods. The second, third, fourth and fifth scenarios investigate the replacement of old light duty vehicles with domestic products over a period of five years. According to the overall results, it is understood that in order to support domestic production old light duty vehicles will be replaced by domestic petrol cars such as Peugeot GLX, Peugeot ROA, Pride and Samand. By the end of the fifth year of the scheme where all the old light-duty vehicles have been replaced, fuel consumption would be lower by 7 million liters per day.

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AN ECONOMIC ANALYSIS OF SCRAPPAGE

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APA: Copy

SALAHI, J., & MALEKPOUR, SEPIDEH. (2009). ECONOMIC ANALYSIS OF REPLACEMENT OF OLDER PETROL PASSENGER VEHICLES IN IRAN. ENERGY ECONOMICS REVIEW, 6(20), 161-185. SID. https://sid.ir/paper/99474/en

Vancouver: Copy

SALAHI J., MALEKPOUR SEPIDEH. ECONOMIC ANALYSIS OF REPLACEMENT OF OLDER PETROL PASSENGER VEHICLES IN IRAN. ENERGY ECONOMICS REVIEW[Internet]. 2009;6(20):161-185. Available from: https://sid.ir/paper/99474/en

IEEE: Copy

J. SALAHI, and SEPIDEH MALEKPOUR, “ECONOMIC ANALYSIS OF REPLACEMENT OF OLDER PETROL PASSENGER VEHICLES IN IRAN,” ENERGY ECONOMICS REVIEW, vol. 6, no. 20, pp. 161–185, 2009, [Online]. Available: https://sid.ir/paper/99474/en

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