An Economic Analysis of Old Heavy Duty Passenger Diesel Vehicles Replacement in Iran

Subject Areas : Financial Economics

Javad  Salahi ¹ (Assistant Professor of Economics, Islamic Azad University, Central Tehran Branch)
Behnaz  Kashani ² (M.A. in Energy Economics)

Received: 2015-06-14 Accepted : 2015-06-14 Published : 2008-03-20

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Abstract :

The road transportation system has carried out a crucial role in goods and passenger transfer. One of the main problems in passenger transportation sector is high rate consumption of gasoil. This paper assesses the cost-benefit of older heavy-duty vehicle replacement with new vehicles in three different scenarios from the government’s view. The scenarios investigate the replacement of old heavy duty vehicles with domestic products, imported vehicles and the combination of domestic products and imported vehicles, respectively for a period of five years. According to the overall results, it is understood that from the view of the government, replacement of older buses with domestic products is suitable. Given that the annual production capacity of the other heavy-duty vehicles is less than the number of existing old heavy-duty vehicles, this segment should be replaced with domestic products and imported vehicles.