Evaluation of Accelerated Vehicles Retirement Program by Game Theory Approach

Subject Areas : Labor and Demographic Economics

hosein sadeghi ¹ ( استادیار اقتصاد دانشگاه تربیت مدرس )
eghlim tamri ² ( کارشناس ارشد اقتصاد انرژی )

Received: 2015-04-28 Accepted : 2015-04-28 Published : 2015-04-01

Keywords: game theory, facilities, Cash, Accelerated Vehicles Retirement program, Car Owner, Transportation and Fuel Staff,

Abstract :

Air pollution and high consumption of energy carriers have led to perform programs like accelerated vehicle retirement program by the government in recent years. In this study, the researchers have tried to examine this program by Game Theory approach. To achieve the goal, firstly, a static game with complete information is planned by three players involving automaker, transportation and fuel staff and old cars owners. Then, by removing the automaker, the game will be continued by two players through specific strategies for each player. Then, by using existing data of the year 2012, the game is re-written by two players. At the balance of three players, old car owners and automakers tend to retire their old vehicle, but the amount of the facilities and cash payments for this program are low. By removing automaker, the balance happens where the car owners tend to retire their old cars and to implement the project, whereas the credits provided by the government is low. Due to the quick increase of car prices, the authorities must pay attention to develop more facilities for the complete success of the program.

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