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Best Practices for Feebate Program Design and Implementation

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John German, Dan Meszler
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This study focuses on "feebate" programs in which vehicles that are more efficient receive rebates and less efficient vehicles are assessed fees. The report finds that in general vehicle efficiency should be based directly and continuously on carbon dioxide (CO2) emissions. With respect to feebates, the study identifies the important elements of a best practice program as including a continuous and linear feebate rate line without any breaks or discontinuities; a pivot point set to make the system self-funding and sustainable; a linear metric, such as CO2 emissions or fuel consumption per unit of distances; and an attribute adjustment (if one is used) based on vehicle size. See the International Council on Clean Transportation Feebates Webinar and Summary for a summary and webcast of a presentation given on this study.