Making an Informed Vehicle Scrappage Decision

Cynthia Chen and Jie (Jane) Lin

Transport Reviews, 2006, vol. 26, issue 6, 731-748

Abstract: According to the US Federal Highway Administration (FHWA), the number of publicly owned vehicles in the USA reached 3 913 999 in 2003. In order to maintain a stable vehicle fleet, government agencies must repeatedly make vehicle scrappage decisions because older vehicles must first retire to make room for newer vehicles. Typically, these decisions are made based on a deterministic ranking evaluation model to select candidate vehicles for replacement. The paper applied an objective and probabilistic method to a vehicle dataset collected by the DuPage County Forest Preserve District ((DCFPD), in the state of Illinois). A Weibull‐form survival model with time‐varying covariate and unobserved heterogeneity was estimated on the dataset. The results suggest that in addition to the fact that vehicle age is negatively related to the vehicle’s survival probability, there are other variables that also appear influential. The survival probabilities of alternative fuel vehicles are similar to those of reformulated unleaded gasoline vehicles. The results suggest that a probabilistic and objective model can benefit government agencies in their vehicle scrappage decisions.

Date: 2006
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DOI: 10.1080/01441640600752545

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