Social cost benefit analysis of EURO IV technologies for vehicular traffic in Delhi
Student name: Ms Arshiya Sibia
Guide: Prof M N Murty
Year of completion: 2015
Host Organisation: TERI University
Supervisor (Host Organisation): Dr Kaushik Ranjan Bandyopadhyay
Abstract: This study attempts an economic appraisal of Bharat stage emission standards (commensurate with Euro norms), for consumers of the (petrol/diesel) passenger car segment in Delhi. By law of diminishing returns, it is costlier to attain marginal reduction in emissions due to costs associated with technology up-gradation. To ascertain the gains in the face of rising costs, a cost benefit analysis is conducted of BS-IV norms from the previously levied BS-III norms. A hypothetical scenario is considered where all passenger cars conform to the same BS type. The potential gains by shifting to BS-IV are determined by comparing incremental capital cost with fuel efficiency gains, improved health benefits using transfer benefit estimates, and monetized benefits of reduced carbon dioxide reduction. This analysis is performed for a baseline model for a 10 year period which is the average lifetime of a car in Delhi, and extrapolated for the entire car population. To highlight the efficacy of BS-IV norms, a similar comparative analysis is conducted for a shift from pre-BS norms i.e. 1996 norms to BS-IV norms. Results show a positive net present value, emphasizing the potential gains from a complete shift to BS-IV norms.
Keywords: BS-IV norms, cost benefit analysis, baseline model, passenger cars, health damage costs, transfer benefit
