SIMULATING THE CONTROLLABILITY OF FEEBATES

System dynamics is used to simulate the impact of feebates to encourag e the sale of cleaner vehicles in southern California. With a feebate system, fees would be imposed on dirty vehicles to finance rebates for clean vehicles. The model is used to learn whether the State of Calif ornia could operate a feebate system in a financially prudent manner. I consider an example in which fees are imposed on conventional vehicl es, and rebates are used to encourage the sale of electric vehicles. T he simulations show that feebates can be controlled despite the many u ncertainties in predicting the future sales of both conventional and e lectric vehicles.