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【正文】 consumer incentives. We classify models as high fueleconomy hybrids if the EPArated fuel economy is 50 percent greater than other vehicles in its class. Using this criterion, we classify the Honda Insight and Civic, Toyota Prius and Camry and the Ford Escape as high fueleconomy vehicles. Figure 1 graphs quarterly domestic sales of high and low fueleconomy hybrids as well as the average quarterly retail price of gasoline reported by the Energy Information Administration (EIA) from Q1 2020 until Q4 2020. Honda and Toyota introduced higheconomy hybrids first, beginning with the Insight, Prius and Civic. Due to earlier introduction dates, sales of higheconomy hybrid models account for the vast majority of total hybrid sales from Q1 2020 to Q4 2020 and 2020, though, sales of lower efficiency models increase substantially accounting for 28 percent of the 182,000 hybrid sales in 2020 and 25 percent of the 235,000 hybrid sales in 2020. Interestingly, sales of all models fall in the final quarter of 2020. Although only anecdotal, this may be the result of the change in federal tax incentives on January Consumers may have chosen to delay hybrid purchases in Q4 of 2020 in anticipation of the more generous federal tax credits. Our dataset of state and federal incentives programs were collected by contacting regulators in each jurisdiction. Although a large number of incentive programs exist, we focus specifically on incentives related to highoccupancy vehicle (HOV) lane access and tax incentives. We omit local incentive programs such as parking fee waivers and state vehicle registration incentives since both are likely of insufficient magnitude to affect statelevel sales of hybrid vehicles substantially. We construct quarterly average taxinclusive retail gasoline price for each state, based on monthly gasoline price data from the Energy Information Administration. We also include statelevel demographic controls from the Current Population Survey. We use the percent of residents with a high school or fouryear college diploma, per capita ine, mean age and proportion female. Finally, we construct proxies capturing consumer travel behavior and preferences for environmental quality and energy security. As a proxy for travel intensity, we use annual percapita vehiclemiles traveled in each state. We also use average muting time as an alternative – the choice of proxy for travel intensity does not change our empirical conclusions. We use statelevel percapita Sierra Club membership as a proxy for the proportion of a state’s population with a high preference for environmental activism. As proxies for the salience of global warming and antiwar sentiment, we use quarterly deviation from 100year average temperatures, percapita armed forces participation, and percapita casualties in Iraq and Afghanistan. Table 2 presents the summary statistics for the hybrid sales data, gasoline prices, state and federal incentives, and socioeconomic measures. We use the unbalanced panel to generate the summary statistics for hybrid sales and state incentives. For demographics and gasoline prices, we treat each statequarter as a single observation and report the summary statistics for the balanced panel. Conditional on positive sales, mean model sales in a particular statequarter are , with a high of 8,871 for Prius sales in California in Q3 2020. Approximately 9
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