Automobile Pollution Control in Brazil

Texto Para Working Paper No. 670

26 Pages Posted: 9 Nov 1999

See all articles by Claudio Ferraz

Claudio Ferraz

University of California, Berkeley - Department of Agricultural & Resource Economics; Institute of Applied Economic Research (IPEA)

Ronaldo Seroa da Motta

Universidade do Estado do Rio de Janeiro (UERJ)

Date Written: September 1999

Abstract

Air pollution concentrations have been rapidly increasing in the major urban areas of Brazil caused mainly by the increasing use of vehicles. In the presence of this negative externality, environmental regulation is required. Car emission control policies in Brazil have relied basically on mandatory emission standards and subsidies for specific cleaner technology resulting in substantial decrease of car emission rates. Nevertheless, car sale taxes, differentiated by vehicles' size and fuel, have also influenced car emission patterns. This paper analyzes the compliance trend of the Brazilian fleet with environmental standards between 1992 and 1997. We find that larger automobiles had the fastest compliance schedule while popular models adjusted very slowly. Also gasoline-fueled models had a faster adjustment pattern than ethanol cars. Additionally, we analyze the current relationship between pollution emissions and car characteristics in order to orient policy formulation. We find a positive relationship between emissions rates and horse power, concluding that although the current value added-sale car tax is not environmental harmful, a tax differentiating clean from dirty models, within each tax bracket, could create substantial incentives for emission control in the future.

JEL Classification: Q25, R48, C21, N7

Suggested Citation

Ferraz, Claudio and Seroa da Motta, Ronaldo, Automobile Pollution Control in Brazil (September 1999). IPEA Discussion Paper No. 670. Available at SSRN: https://ssrn.com/abstract=183811 or http://dx.doi.org/10.2139/ssrn.183811

Claudio Ferraz (Contact Author)

University of California, Berkeley - Department of Agricultural & Resource Economics ( email )

Berkeley, CA 94720
United States

Institute of Applied Economic Research (IPEA) ( email )

Av. Presidente Antonio Carlos 51
16 andar, Castelo
RJ 20020-010 Rio de Janeiro
Brazil
+55 21 3804-8000 (Phone)
+55 21 2240-1920 (Fax)

Ronaldo Seroa da Motta

Universidade do Estado do Rio de Janeiro (UERJ) ( email )

Av Borges de Medeiros 3709 ap 401
ap 401
Lagoa, 22470-001
Brazil
21997775494 (Phone)

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