26 Feb '15, 6am

Professors: Stimulate Sales With Taxes Instead Of Subsidies

To stimulate the electrified vehicle market, the White House has developed a mixture of rebates and subsidies. But this may not be the most effective tactic, according to a pair of business management professors. Anton Ovchinnikov, associate professor at the Queen’s School of Business in Kingston, Ontario, Canada, and Gal Raz, associate professor at the University of Virginia Darden School of Business laid out their idea in the Washington Post . They also recently published their in-depth analysis in the journal IEEE Transactions on Engineering Management . “Designing incentive schemes for green technology adoption requires a comprehensive understanding of how firms and consumers will respond to them,” Ovchinnikov and Raz said. Under the current solution, a $7,500 tax rebate was offered to consumers buying plug-in and electric vehicles. To support President Obama’s goal of...

Full article: http://www.hybridcars.com/professors-stimulate-sales-with...

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