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Institutional analysis on impediments over fuel consumption reduction at Iran's transportation niches

Mohammad Javad Saket, Abbas Maleki, Erfan Doroudgar Hezaveh and Mohammad Sadegh Karimi

Energy Policy, 2019, vol. 129, issue C, 861-867

Abstract: The transportation sector is one of the sustainable development wheels that requires a lot of energy to operate, therefore it is concerned as one of the main factors in greenhouse gas emissions and global warming. In Iran, like rest of the world, the light-duty vehicles are the effective factors in the pollution of the metropolitan cities. Although the management of their fuel consumption is a vital action in decreasing the cost and air pollution, that's inextricable link with the public welfare and the economy of the car manufacturers creates barriers. An accurate analysis concerning the barriers to reducing the fuel consumption can be obtained by using the game theory method in the light-duty vehicles. For this purpose, the effective factors including the people, car manufacturer and government are modeled and their utility are considered. By examining the relationships among the players and their actions we can conclude that the penalty option can significantly help the management of the fuel consumption. Also, forcing the government to lend to the car manufacturer to improve the fuel consumption of motor vehicles reduces fuel consumption. In addition, standard setting for the average fuel consumption of the producing cars should be staged and stepped.

Keywords: Game theory; Transportation; Light duty vehicle; Gasoline; Institutional analysis (search for similar items in EconPapers)
Date: 2019
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