Title: Valuing Society First: An Assessment of the Potential for a Feebate Policy in India
Download Report : Valuing Society First Feebates Policy
Synopsis: A feebate is a policy by which inefficient or polluting vehicles incur a surcharge (fee-) while efficient ones receive a rebate (-bate). Austria, Denmark, France, the Netherlands, Norway, Ontario (Canada), and Singapore have introduced variations of feebates.
Its advantages include its market-based design; its potential to be revenue neutral, size neutral, and technology agnostic; and its alignment of private interests with societal interests and incentives. While there are significant challenges in designing and implementing a feebate, the policy can offer an advantageous alternative to fuel economy or greenhouse gas standards, which are static, soon become obsolete, and give no incentive to outperform.
On the other hand, feebates drive continuous improvement and innovation. A feebate that is politically attractive and supports both customers' and manufacturers' transitions to more-efficient, cleaner vehicle technologies will require careful attention from and close collaboration among India's public- and private-sector leadership.