To economize on allowance outlays motorists have an incentive to better maintain their vehicles, retire them sooner, avoid congested areas, and avoid especially pollution-sensitive places. Hopefully, such a capability is on a drawing board somewhere. For now, a grab bag of other policies must be used. Even if it can t be levied on new cars in place of existing technology mandates, regional authorities can levy it on used cars to encourage better maintenance and accelerated vehcle retirement. Vehicles use at especially troublesome times and places can be discouraged by letting it be known that the remote sensing devices will be deployed accordingly.
Political feasibility is the emissions fee s biggest drawback.
However, the incentives created by a pass-fail test will be much weaker than if fees vary directly with emissions. As traditional sources of emission reductions were exhausted and incremental control costs escalated, interest increased in speeding up fleet turnover by buying and retiring old cars. AVRPs also generate beneficial side effects like improved safety and energy conservation. AVRPs have three major drawbacks. AVRPs violate the polluter pays principle by paying vehicle owners according to how much damage they will otherwise do, raising the potential for error and perverse incentives.