Report No. 70290-ge

Achieve and Maintain a Greener Vehicle Fleet

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• Current condition: strong supply and demand for second-hand, older, polluting vehicles, which dominate the market
• Passenger cars
• Current condition: vehicle standards are enforced for only a small fraction of the vehicle fleet
• Rationale for change: the need to influence long-term consumption patterns in the face of rapid motorization
• Figure 13
• How can this be done

Achieve and Maintain a Greener Vehicle Fleet Why this measure? Figure 11: Significantly higher average age of vehicle fleet in Georgia comparing to EU-27 countries Source: WB staff calculations based on data provided by Ministry of Internal Affairs; TREMOVE v.3.1, 2009 Current condition: strong supply and demand for second-hand, older, polluting vehicles, which dominate the market. On average, motor vehicles operated in Georgia are much older than those operated in Western European countries (Error: Reference source not found and Figure 12), and about 98 percent of newly registered vehicles are second-hand.CITATION Gla08 \n \t \l 1033 This growing influx of old vehicles coupled with rising demand for private cars is the main cause of rapid deterioration in air quality. At present levels of economic development in Georgia, most vehicle buyers’ incomes are too low to purchase newer cars, and lower customs fees for older vehicles distort the market in favor of older cars.CITATION Gla08 \n \t \l 1033 Moreover, as mentioned in Section III.A, the lack of fuel quality control leads to further degradation of vehicle condition and standards.CITATION Gla08 \n \t \l 1033 Figure 12: Vehicle Fleet Age Distribution by Vehicle Type Passenger cars Buses Trucks Source: WB staff calculations based on data provided by Georgian Ministry of Internal Affairs Current condition: vehicle standards are enforced for only a small fraction of the vehicle fleet. Georgia has adopted legislation to alight with EU standards for commercial vehicles, but regular inspection and enforcement applies only to operators of international cargo and passenger transport services.CITATION Gla08 \n \t \l 1033 Expanding the inspection scope to cover commercial vehicles operating domestic services and private vehicles appears to be a challenge, given the staffing levels at the Land Transport Agency (LTA). Only three staff in the monitoring unit now perform vehicle inspections for about 300 transport companies that own and operate about 2,000 vehicles. Rationale for change: the need to influence long-term consumption patterns in the face of rapid motorization. As incomes rise, motorization rates tend to surge (Figure 13). Typically, demand for individual car ownership and use has increased rapidly when per capita GDP reaches US$4,000–8,000 (Figure 14). If Georgia returns to the high growth rates enjoyed before the crises, these income levels could be reached in the next few years. Therefore developing a policy framework now that will provide incentives for consumers to opt for greener transport choices—such as purchasing fuel-efficient cars—will have long-term effects on the local and global public goods. This is borne out by international experience, which suggests that policies that shape consumer choices at Georgia’s current income level will have enduring outcomes (Figure 4). Figure 13: Strong positive correlation between GDP and motor vehicle ownership Figure 14: Vehicle ownership growth much faster than GDP growth between $4,000-8,000 per capita Source: World Development Indicators; Note: Asterisks (*) indicate data from 2007, otherwise 2008 Source: Dargay, Gately and Sommer [Dar07] How can this be done? Directory: curated curated -> Concept stage curated -> Concept stage curated -> Republic of Côte d'Ivoire Urbanization Review curated -> Report No: aus11011 Central America curated -> Report No. 94474-pk fiscal Disaster Risk Assessment Options for Consideration curated -> Environmental and Social Management Framework for the Costa Rica Telecommunications Sector Modernization Project curated -> Environment Impact Assessment For Jiangxi Shangrao Sanqingshan Airport Beijing Guohuantiandi Environmental Technology Development Center. Ltd. Oct. 2012 Content curated -> Growth through Innovation An Industrial Strategy for Shanghai By Shahid Yusuf Kaoru Nabeshima April 22nd, 2009 curated -> Report No: 70178. People's Republic of China Download 3.46 Mb. Share with your friends: