Feebate systems are a policy tool for reducing the emissions of passenger cars (and potentially other vehicles). In a feebate system cars with high CO2 emissions are subject to a charge, while low-emission cars receive a subsidy, thus incentivizing consumers to opt for a more eco-friendly vehicle.
Feebate systems can be designed in many different ways and the resultant benefits and budgetary effects depend very much on the exact design. To provide policy-makers insight into the ins and outs of such systems, at the request of the International Council on Clean Transportation (ICCT) CE Delft has developed a feebate simulation tool in collaboration with Cambridge Econometrics. This tool gives users an understanding of the various ways in which such a system can be designed and the likely impacts of any given design. The tool is targeted mainly at policy-makers in developing and transition countries, but will also provide their counterparts in developed nations numerous interesting insights.
The feebate simulation tool is available on the ICTT website: www.theicct.org/feebate-simulation-tool. The user manual is also available there.