cost benefit analysis on fuel economy: thailand & …...passenger car 3,145* 4,029 pickup truck...

34
1 Thursday 13 November 2018, Borneo Convention Centre, Kuching, Malaysia Cost Benefit Analysis on Fuel Economy: Thailand & The Philippines Peerawat SAISIRIRAT Renewable Energy Laboratory National Metal and Materials Technology Center (MTEC) & The ASEAN – German Technical Cooperation Programme “Cities, Environment and Transport” Transport and Climate Change The 2nd APEC Workshop on Policy Dialogue on Fuel Economy Platform & The 4th Forum of the ASEAN Fuel Economy Platform

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Page 1: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

1Thursday 13 November 2018 Borneo Convention Centre Kuching Malaysia

Cost Benefit Analysis on Fuel EconomyThailand amp The Philippines

Peerawat SAISIRIRAT

Renewable Energy LaboratoryNational Metal and Materials Technology Center (MTEC)

ampThe ASEAN ndash German Technical Cooperation Programme

ldquoCities Environment and TransportrdquoTransport and Climate Change

The 2nd APEC Workshop on Policy Dialogue on Fuel Economy Platformamp

The 4th Forum of the ASEAN Fuel Economy Platform

2ASEAN German Technical Cooperation ndash Transport and Climate Change

Outline

bull Rationales and introduction

bull Cost benefit analysis of fuel economy improvement in Thailand

bull Results in customerrsquos viewpoint (Total Cost of Ownership)

bull Results in governmentrsquos viewpoint

bull Impacts of fuel economy improvement in the Philippines

bull Updated recent governmentrsquos efforts on FE improvement (Thailand amp Philippines)

3

Rationale Thailand final energy consumption

bull Transportation sector begins to exceed industry sector since 2015

bull Energy efficiency is the key

DEDE (2017) Energy Balance of Thailand 25602017 httpwwwdedegothdownloadstate_61Energy Balance of Thailand 2017pdf

EPPO (2017) Final Energy by Sector (Graph) httpwwweppogothindexphpenen-energystatisticssummary-

statisticorders[publishUp]=publishUpampissearch=1 httpwwweppogotheppositeimagesEnergy-

StatisticsenergyinformationEnergy_StatisticsSummaryT01_02_04ppt

Transportation

Industry

Residential amp Commercial

Agriculture

ASEAN German Technical Cooperation ndash Transport and Climate Change

TransportationIndustry

Residential amp CommercialAgriculture

2017p

4

Impacts of road transport by vehicle type in Thailand

ASEAN German Technical Cooperation ndash Transport and Climate Change

Passenger Light Duty Vehicles (PLDV)share large contribution in road transport

5

FE Policy in ASEAN amp Thailand

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwaseanorgstorage20160111publicationKUALA_LUMPUR_TRANSPORT_STRATEGIC_PLANpdf

httpwwwaseanenergyorgwp-contentuploads201512HighRes-APAEC-online-version-finalpdf

httpwwwratchakitchasocgothDATAPDF2559A1151PDF

ASEAN Cooperation in Transportation Fuel Economy

TRANSPORT

sustainable transport

standards regulations

ENERGY

20 improvement of

energy intensity

National Economic and Social Development Plan

improve energy efficiencyby introducing

CO2-based excise tax

6

Thailand policy on fuel economy NDC amp EEP

EEP Energy Efficiency Plan

GHG reduction in transportation sector

NDC

Nationally Determined Contribution ASEAN German Technical Cooperation ndash Transport and Climate Change

7

Thailand position in the world and possibility to improve vehicle FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

8

Government activities to improve FE of new vehicles

bull Thailand vehicle excise tax structure

ASEAN German Technical Cooperation ndash Transport and Climate Change

Tax Structure Before Janrsquo2016 Tax Structure Eff 1 Jan 2016

HEV-PPV le175 gkm= 23

HEV-DC le175 gkm= 10

EV tax=2

Hybrid tax divide 2

Updated on 20 June 2018

Updated on 20 June 2018

Dec 2012

for implementation

on 1 Jan 2016

9

Government activities to improve FE of new vehicles

bull Thailand vehicle excise tax structure

ASEAN German Technical Cooperation ndash Transport and Climate Change

4 5 5) Suggested Price (Excise Tax Rate)

Updated on

16 September 2017

10

Fuel Efficiency Policies in the Land Transport Sector in Thailand

bull A study of the Transport and Climate Change (TCC)

Phase I

1 To collect necessary data and conduct a policy inventory related to fuel efficiency policies and measures

2 To use this policy inventory to conduct a gap analysis of what is missing for increased energy efficiency for PCs and MCs

3 To identify key issues barriers opportunities and recommendations for advancing fuel efficiency policies in Thailand

Phase II

1 To create a template for FE data collection to update the data (up to year 2017) and the policiesmeasures related to fuel efficiency and to analyse the impact of existing FE policies and to provide the recommendations for FE improvement

2 To analyse COST-BENEFIT OF FE POLICIESMEASURES implementation and model the IMPACTS OF POSSIBLE SCENARIOS and create recommendationskey considerations on implementing proposed FE policiesmeasurements and improving the FE technology

3 To create common understanding and good cooperation among stakeholders including government private sector and customer groups regarding the improvement of fuel efficiency of passenger cars and motorcycles in Thailand

4 To push forward advance FE policiesmeasures to actual implementation

ASEAN German Technical Cooperation ndash Transport and Climate Change

Phase IPhase II (Draft)

httpswwwtransportandclimatechangeorg

11

Scenario definition of FE development 2016 2030

According on current situation nominal improvement rate GFEI Target

ASEAN German Technical Cooperation ndash Transport and Climate Change

bull Current NO FE improvement

According to

GFEI Global

Target

bull BAU FE improvement of 10 annual rate

bull GFEI Target - FE improvement of 31 annual rate Projection toward

44 Lge100km at 2030

(market average for

PC amp PU) then assume FE

improvement at constant rate

of 10 annually

12

3 Proposals of Fuel Economy Improvement measures

Aims of ldquoCost Benefit Analysisrdquo

To analyze cost benefit of proposed

FE policymeasure implementation

To model the impacts of possible scenario and

To create recommendationskey considerations

on implementing proposed FE policymeasures

and improving the FE technology

ASEAN German Technical Cooperation ndash Transport and Climate Change

Revise the Excise tax scheme

for new vehicles

Improve Eco-sticker

Revise Fuel tax

Annual registration tax

13

Required FE policy toward desired FE target

bull Focusing on 3 Proposals of Fuel Economy Improvement measures

ASEAN German Technical Cooperation ndash Transport and Climate Change

Assumption BAUAssumptions for

GFEI target scenario

Industry baseline for FC improvement rate 100 100

Impact of eco-sticker on FC improvement rate - 01

Linear slope of excise tax

[THB(gCO2km)]

Passenger car 3145 4029

Pickup truck 1044 1999

Linear slope of annual

registration tax [THB(gCO2km)]

Passenger car As a function of engine size 110

Pickup truck As a function of vehicle curb weight 132

Fuel tax increase () Static fuel price 20

Target 2016 2030

PC 568 366

PU 767 494

Average 681 438

14

Methodology of the COST BENEFIT ANALYSIS

bull Impacts projection of FE policy by using FEPIT (Fuel Economy Policy Implementation Tool)

OUTPUT Policy intensive level Excise tax Circulation tax Fuel tax toward the desired FE target

Projection of Market share

Projection of Fuel Consumption for Passenger car amp Pickup truck

bull Determine impacts on Owner (customer) lsquos viewpoint (comparing by Net Present Value in 20 years)

By variations of Capital cost Vehicle price at factory gate (with improvement of Fuel Economydagger)

Capital cost Excise tax change

Annual registration tax change

Fuel expense decrease with FE improvement change with fuel price

Maintenance cost depended on technology (cost for EV is higher for battery replacement)

bull Determine impacts on government lsquos viewpoint (eg fuel saving CO2 reduction government income taxes)

FEPIT Tool ndash Fuel Economy Implementation Tool ICCT (International Council on Clean Transportation)

daggerCost curve with FE improvement ndash mainly from ICCT

ASEAN German Technical Cooperation ndash Transport and Climate Change

15

Updated FE database for new Passenger Light Duty Vehicle (PLDV)

Vehicle typesNew sale (Top 10 ranked vehicles) Weighted-average FC (Lge100 km)

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

1 Eco car 187429 118519 87745 114095 156234 488 489 488 475 476

2 City car subcompact Sedan amp

Hatchback

271018 167522 117548 76447 86200 599 598 578 585 582

3 Compact car C-segment

Sedan Hatchback Coupe Roadster

89975 66586 40624 47820 53797 645 651 655 619 614

4 D-segment full size sedan 34363 19343 16407 12312 9118 722 733 711 725 725

5 mini-MPV and B-SUV 42046 41046 50690 39417 40293 744 695 662 625 625

6 SUV and MPV 10307 10617 14332 13790 22974 883 774 759 774 748

7 PPV 58942 48646 69063 60683 59576 952 917 843 815 815

8 Single cab pickup 75024 51325 50851 48127 44485 765 766 760 740 736

9 Extra cab pickup 278019 206130 168236 176758 186727 769 770 769 740 744

10 4 doors pickup 164650 114385 107986 108602 157299 855 856 858 796 791

Sub-total vehicle ( share of

total vehicle registration)

1211773

(9325)

844119

(9328)

723482

(9088)

698051

(8602)

816703

(8879)

DLT new registers 1299508 904969 796089 811518 919820

Annual weighted-average FC 698 701 708 681 675

FC change 04 09 -38 -09

Weight Average FE of Passenger Light Duty Vehicles (PLDV) sales during 2013-2017

Ref GIZ study based on data from Department of Land Transporthttpwwwfiafoundationorgmedia45112wp11-iea-report-update-2014pdfhttpswwwglobalfueleconomyorgmedia418761wp15-ldv-comparisonpdf

ASEAN German Technical Cooperation ndash Transport and Climate Change

54 59 5869 79 77

71 76 76

2013 2014 2015

16

Vehicles classification for FEPIT tool

ASEAN German Technical Cooperation ndash Transport and Climate Change

2016 Data

Vehicle types

Corrected data Prepared data for FEPIT input

Weighted-average FC

(Lge100 km)

Vehicle class FC range

(Lge100km)

CO2 range

(gCO2km)

Passenger car 2016 average (568)

BEV 15 357

PHEV 30 714

1 Eco car 475 HEV 53 1261

2 City car subcompact 585 ECO Car 2 lt 43 lt 1023

3 Compact car C-segment 619 Eco Car 1 43 ndash 51 1023 ndash 1213

4 D-segment full size sedan 725 Compact car 51 ndash 63 1213 ndash 1499

5 mini-MPV and B-SUV 625 Mini-MPV B-SUV 63 ndash 84 1499 ndash 1998

6 SUV and MPV 774 SUV Full size MPV gt 84 gt 1998

Pickup based 2016 average (767)(singlespacedouble cabs amp PPV) BEV 2638 6275

PHEV 4475 10645

HEV 6313 15015

ICE1 lt 51 lt 1213

7 PPV 815 ICE2 51 ndash 63 1213 ndash 1499

8 Single cab pickup 740 ICE3 63 ndash 74 1499 ndash 1760

9 Extra cab pickup 740 ICE4 74 ndash 84 1760 ndash 1998

10 4 doors pickup 796 ICE5 gt 84 gt 1998

PLDV average 681

Exci

se ta

x st

ruct

urebull Thai excise tax rate use

different criteria between

passenger car (tougher)

and pickup truck (more

lenient)

bull Even within pickup truck

with same CO2

emissionkm excise tax

rates are different

1 lt 15 lt 2 compartments

17

FEPIT prediction of new passenger car mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Label shows average FE [Lge100km]

in that vehicle segment which

improved with FEPIT estimationProjection

Passenger car

2016 2030

Projection

568 366 Lge100km

(2016) (2030)

18

FEPIT prediction of new pickup truck mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Projection

Pickup based (SingleSpaceDouble Cabs amp PPV)

2016 2030

Projection

767 494 Lge100km

(2016) (2030)

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 2: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

2ASEAN German Technical Cooperation ndash Transport and Climate Change

Outline

bull Rationales and introduction

bull Cost benefit analysis of fuel economy improvement in Thailand

bull Results in customerrsquos viewpoint (Total Cost of Ownership)

bull Results in governmentrsquos viewpoint

bull Impacts of fuel economy improvement in the Philippines

bull Updated recent governmentrsquos efforts on FE improvement (Thailand amp Philippines)

3

Rationale Thailand final energy consumption

bull Transportation sector begins to exceed industry sector since 2015

bull Energy efficiency is the key

DEDE (2017) Energy Balance of Thailand 25602017 httpwwwdedegothdownloadstate_61Energy Balance of Thailand 2017pdf

EPPO (2017) Final Energy by Sector (Graph) httpwwweppogothindexphpenen-energystatisticssummary-

statisticorders[publishUp]=publishUpampissearch=1 httpwwweppogotheppositeimagesEnergy-

StatisticsenergyinformationEnergy_StatisticsSummaryT01_02_04ppt

Transportation

Industry

Residential amp Commercial

Agriculture

ASEAN German Technical Cooperation ndash Transport and Climate Change

TransportationIndustry

Residential amp CommercialAgriculture

2017p

4

Impacts of road transport by vehicle type in Thailand

ASEAN German Technical Cooperation ndash Transport and Climate Change

Passenger Light Duty Vehicles (PLDV)share large contribution in road transport

5

FE Policy in ASEAN amp Thailand

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwaseanorgstorage20160111publicationKUALA_LUMPUR_TRANSPORT_STRATEGIC_PLANpdf

httpwwwaseanenergyorgwp-contentuploads201512HighRes-APAEC-online-version-finalpdf

httpwwwratchakitchasocgothDATAPDF2559A1151PDF

ASEAN Cooperation in Transportation Fuel Economy

TRANSPORT

sustainable transport

standards regulations

ENERGY

20 improvement of

energy intensity

National Economic and Social Development Plan

improve energy efficiencyby introducing

CO2-based excise tax

6

Thailand policy on fuel economy NDC amp EEP

EEP Energy Efficiency Plan

GHG reduction in transportation sector

NDC

Nationally Determined Contribution ASEAN German Technical Cooperation ndash Transport and Climate Change

7

Thailand position in the world and possibility to improve vehicle FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

8

Government activities to improve FE of new vehicles

bull Thailand vehicle excise tax structure

ASEAN German Technical Cooperation ndash Transport and Climate Change

Tax Structure Before Janrsquo2016 Tax Structure Eff 1 Jan 2016

HEV-PPV le175 gkm= 23

HEV-DC le175 gkm= 10

EV tax=2

Hybrid tax divide 2

Updated on 20 June 2018

Updated on 20 June 2018

Dec 2012

for implementation

on 1 Jan 2016

9

Government activities to improve FE of new vehicles

bull Thailand vehicle excise tax structure

ASEAN German Technical Cooperation ndash Transport and Climate Change

4 5 5) Suggested Price (Excise Tax Rate)

Updated on

16 September 2017

10

Fuel Efficiency Policies in the Land Transport Sector in Thailand

bull A study of the Transport and Climate Change (TCC)

Phase I

1 To collect necessary data and conduct a policy inventory related to fuel efficiency policies and measures

2 To use this policy inventory to conduct a gap analysis of what is missing for increased energy efficiency for PCs and MCs

3 To identify key issues barriers opportunities and recommendations for advancing fuel efficiency policies in Thailand

Phase II

1 To create a template for FE data collection to update the data (up to year 2017) and the policiesmeasures related to fuel efficiency and to analyse the impact of existing FE policies and to provide the recommendations for FE improvement

2 To analyse COST-BENEFIT OF FE POLICIESMEASURES implementation and model the IMPACTS OF POSSIBLE SCENARIOS and create recommendationskey considerations on implementing proposed FE policiesmeasurements and improving the FE technology

3 To create common understanding and good cooperation among stakeholders including government private sector and customer groups regarding the improvement of fuel efficiency of passenger cars and motorcycles in Thailand

4 To push forward advance FE policiesmeasures to actual implementation

ASEAN German Technical Cooperation ndash Transport and Climate Change

Phase IPhase II (Draft)

httpswwwtransportandclimatechangeorg

11

Scenario definition of FE development 2016 2030

According on current situation nominal improvement rate GFEI Target

ASEAN German Technical Cooperation ndash Transport and Climate Change

bull Current NO FE improvement

According to

GFEI Global

Target

bull BAU FE improvement of 10 annual rate

bull GFEI Target - FE improvement of 31 annual rate Projection toward

44 Lge100km at 2030

(market average for

PC amp PU) then assume FE

improvement at constant rate

of 10 annually

12

3 Proposals of Fuel Economy Improvement measures

Aims of ldquoCost Benefit Analysisrdquo

To analyze cost benefit of proposed

FE policymeasure implementation

To model the impacts of possible scenario and

To create recommendationskey considerations

on implementing proposed FE policymeasures

and improving the FE technology

ASEAN German Technical Cooperation ndash Transport and Climate Change

Revise the Excise tax scheme

for new vehicles

Improve Eco-sticker

Revise Fuel tax

Annual registration tax

13

Required FE policy toward desired FE target

bull Focusing on 3 Proposals of Fuel Economy Improvement measures

ASEAN German Technical Cooperation ndash Transport and Climate Change

Assumption BAUAssumptions for

GFEI target scenario

Industry baseline for FC improvement rate 100 100

Impact of eco-sticker on FC improvement rate - 01

Linear slope of excise tax

[THB(gCO2km)]

Passenger car 3145 4029

Pickup truck 1044 1999

Linear slope of annual

registration tax [THB(gCO2km)]

Passenger car As a function of engine size 110

Pickup truck As a function of vehicle curb weight 132

Fuel tax increase () Static fuel price 20

Target 2016 2030

PC 568 366

PU 767 494

Average 681 438

14

Methodology of the COST BENEFIT ANALYSIS

bull Impacts projection of FE policy by using FEPIT (Fuel Economy Policy Implementation Tool)

OUTPUT Policy intensive level Excise tax Circulation tax Fuel tax toward the desired FE target

Projection of Market share

Projection of Fuel Consumption for Passenger car amp Pickup truck

bull Determine impacts on Owner (customer) lsquos viewpoint (comparing by Net Present Value in 20 years)

By variations of Capital cost Vehicle price at factory gate (with improvement of Fuel Economydagger)

Capital cost Excise tax change

Annual registration tax change

Fuel expense decrease with FE improvement change with fuel price

Maintenance cost depended on technology (cost for EV is higher for battery replacement)

bull Determine impacts on government lsquos viewpoint (eg fuel saving CO2 reduction government income taxes)

FEPIT Tool ndash Fuel Economy Implementation Tool ICCT (International Council on Clean Transportation)

daggerCost curve with FE improvement ndash mainly from ICCT

ASEAN German Technical Cooperation ndash Transport and Climate Change

15

Updated FE database for new Passenger Light Duty Vehicle (PLDV)

Vehicle typesNew sale (Top 10 ranked vehicles) Weighted-average FC (Lge100 km)

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

1 Eco car 187429 118519 87745 114095 156234 488 489 488 475 476

2 City car subcompact Sedan amp

Hatchback

271018 167522 117548 76447 86200 599 598 578 585 582

3 Compact car C-segment

Sedan Hatchback Coupe Roadster

89975 66586 40624 47820 53797 645 651 655 619 614

4 D-segment full size sedan 34363 19343 16407 12312 9118 722 733 711 725 725

5 mini-MPV and B-SUV 42046 41046 50690 39417 40293 744 695 662 625 625

6 SUV and MPV 10307 10617 14332 13790 22974 883 774 759 774 748

7 PPV 58942 48646 69063 60683 59576 952 917 843 815 815

8 Single cab pickup 75024 51325 50851 48127 44485 765 766 760 740 736

9 Extra cab pickup 278019 206130 168236 176758 186727 769 770 769 740 744

10 4 doors pickup 164650 114385 107986 108602 157299 855 856 858 796 791

Sub-total vehicle ( share of

total vehicle registration)

1211773

(9325)

844119

(9328)

723482

(9088)

698051

(8602)

816703

(8879)

DLT new registers 1299508 904969 796089 811518 919820

Annual weighted-average FC 698 701 708 681 675

FC change 04 09 -38 -09

Weight Average FE of Passenger Light Duty Vehicles (PLDV) sales during 2013-2017

Ref GIZ study based on data from Department of Land Transporthttpwwwfiafoundationorgmedia45112wp11-iea-report-update-2014pdfhttpswwwglobalfueleconomyorgmedia418761wp15-ldv-comparisonpdf

ASEAN German Technical Cooperation ndash Transport and Climate Change

54 59 5869 79 77

71 76 76

2013 2014 2015

16

Vehicles classification for FEPIT tool

ASEAN German Technical Cooperation ndash Transport and Climate Change

2016 Data

Vehicle types

Corrected data Prepared data for FEPIT input

Weighted-average FC

(Lge100 km)

Vehicle class FC range

(Lge100km)

CO2 range

(gCO2km)

Passenger car 2016 average (568)

BEV 15 357

PHEV 30 714

1 Eco car 475 HEV 53 1261

2 City car subcompact 585 ECO Car 2 lt 43 lt 1023

3 Compact car C-segment 619 Eco Car 1 43 ndash 51 1023 ndash 1213

4 D-segment full size sedan 725 Compact car 51 ndash 63 1213 ndash 1499

5 mini-MPV and B-SUV 625 Mini-MPV B-SUV 63 ndash 84 1499 ndash 1998

6 SUV and MPV 774 SUV Full size MPV gt 84 gt 1998

Pickup based 2016 average (767)(singlespacedouble cabs amp PPV) BEV 2638 6275

PHEV 4475 10645

HEV 6313 15015

ICE1 lt 51 lt 1213

7 PPV 815 ICE2 51 ndash 63 1213 ndash 1499

8 Single cab pickup 740 ICE3 63 ndash 74 1499 ndash 1760

9 Extra cab pickup 740 ICE4 74 ndash 84 1760 ndash 1998

10 4 doors pickup 796 ICE5 gt 84 gt 1998

PLDV average 681

Exci

se ta

x st

ruct

urebull Thai excise tax rate use

different criteria between

passenger car (tougher)

and pickup truck (more

lenient)

bull Even within pickup truck

with same CO2

emissionkm excise tax

rates are different

1 lt 15 lt 2 compartments

17

FEPIT prediction of new passenger car mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Label shows average FE [Lge100km]

in that vehicle segment which

improved with FEPIT estimationProjection

Passenger car

2016 2030

Projection

568 366 Lge100km

(2016) (2030)

18

FEPIT prediction of new pickup truck mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Projection

Pickup based (SingleSpaceDouble Cabs amp PPV)

2016 2030

Projection

767 494 Lge100km

(2016) (2030)

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 3: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

3

Rationale Thailand final energy consumption

bull Transportation sector begins to exceed industry sector since 2015

bull Energy efficiency is the key

DEDE (2017) Energy Balance of Thailand 25602017 httpwwwdedegothdownloadstate_61Energy Balance of Thailand 2017pdf

EPPO (2017) Final Energy by Sector (Graph) httpwwweppogothindexphpenen-energystatisticssummary-

statisticorders[publishUp]=publishUpampissearch=1 httpwwweppogotheppositeimagesEnergy-

StatisticsenergyinformationEnergy_StatisticsSummaryT01_02_04ppt

Transportation

Industry

Residential amp Commercial

Agriculture

ASEAN German Technical Cooperation ndash Transport and Climate Change

TransportationIndustry

Residential amp CommercialAgriculture

2017p

4

Impacts of road transport by vehicle type in Thailand

ASEAN German Technical Cooperation ndash Transport and Climate Change

Passenger Light Duty Vehicles (PLDV)share large contribution in road transport

5

FE Policy in ASEAN amp Thailand

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwaseanorgstorage20160111publicationKUALA_LUMPUR_TRANSPORT_STRATEGIC_PLANpdf

httpwwwaseanenergyorgwp-contentuploads201512HighRes-APAEC-online-version-finalpdf

httpwwwratchakitchasocgothDATAPDF2559A1151PDF

ASEAN Cooperation in Transportation Fuel Economy

TRANSPORT

sustainable transport

standards regulations

ENERGY

20 improvement of

energy intensity

National Economic and Social Development Plan

improve energy efficiencyby introducing

CO2-based excise tax

6

Thailand policy on fuel economy NDC amp EEP

EEP Energy Efficiency Plan

GHG reduction in transportation sector

NDC

Nationally Determined Contribution ASEAN German Technical Cooperation ndash Transport and Climate Change

7

Thailand position in the world and possibility to improve vehicle FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

8

Government activities to improve FE of new vehicles

bull Thailand vehicle excise tax structure

ASEAN German Technical Cooperation ndash Transport and Climate Change

Tax Structure Before Janrsquo2016 Tax Structure Eff 1 Jan 2016

HEV-PPV le175 gkm= 23

HEV-DC le175 gkm= 10

EV tax=2

Hybrid tax divide 2

Updated on 20 June 2018

Updated on 20 June 2018

Dec 2012

for implementation

on 1 Jan 2016

9

Government activities to improve FE of new vehicles

bull Thailand vehicle excise tax structure

ASEAN German Technical Cooperation ndash Transport and Climate Change

4 5 5) Suggested Price (Excise Tax Rate)

Updated on

16 September 2017

10

Fuel Efficiency Policies in the Land Transport Sector in Thailand

bull A study of the Transport and Climate Change (TCC)

Phase I

1 To collect necessary data and conduct a policy inventory related to fuel efficiency policies and measures

2 To use this policy inventory to conduct a gap analysis of what is missing for increased energy efficiency for PCs and MCs

3 To identify key issues barriers opportunities and recommendations for advancing fuel efficiency policies in Thailand

Phase II

1 To create a template for FE data collection to update the data (up to year 2017) and the policiesmeasures related to fuel efficiency and to analyse the impact of existing FE policies and to provide the recommendations for FE improvement

2 To analyse COST-BENEFIT OF FE POLICIESMEASURES implementation and model the IMPACTS OF POSSIBLE SCENARIOS and create recommendationskey considerations on implementing proposed FE policiesmeasurements and improving the FE technology

3 To create common understanding and good cooperation among stakeholders including government private sector and customer groups regarding the improvement of fuel efficiency of passenger cars and motorcycles in Thailand

4 To push forward advance FE policiesmeasures to actual implementation

ASEAN German Technical Cooperation ndash Transport and Climate Change

Phase IPhase II (Draft)

httpswwwtransportandclimatechangeorg

11

Scenario definition of FE development 2016 2030

According on current situation nominal improvement rate GFEI Target

ASEAN German Technical Cooperation ndash Transport and Climate Change

bull Current NO FE improvement

According to

GFEI Global

Target

bull BAU FE improvement of 10 annual rate

bull GFEI Target - FE improvement of 31 annual rate Projection toward

44 Lge100km at 2030

(market average for

PC amp PU) then assume FE

improvement at constant rate

of 10 annually

12

3 Proposals of Fuel Economy Improvement measures

Aims of ldquoCost Benefit Analysisrdquo

To analyze cost benefit of proposed

FE policymeasure implementation

To model the impacts of possible scenario and

To create recommendationskey considerations

on implementing proposed FE policymeasures

and improving the FE technology

ASEAN German Technical Cooperation ndash Transport and Climate Change

Revise the Excise tax scheme

for new vehicles

Improve Eco-sticker

Revise Fuel tax

Annual registration tax

13

Required FE policy toward desired FE target

bull Focusing on 3 Proposals of Fuel Economy Improvement measures

ASEAN German Technical Cooperation ndash Transport and Climate Change

Assumption BAUAssumptions for

GFEI target scenario

Industry baseline for FC improvement rate 100 100

Impact of eco-sticker on FC improvement rate - 01

Linear slope of excise tax

[THB(gCO2km)]

Passenger car 3145 4029

Pickup truck 1044 1999

Linear slope of annual

registration tax [THB(gCO2km)]

Passenger car As a function of engine size 110

Pickup truck As a function of vehicle curb weight 132

Fuel tax increase () Static fuel price 20

Target 2016 2030

PC 568 366

PU 767 494

Average 681 438

14

Methodology of the COST BENEFIT ANALYSIS

bull Impacts projection of FE policy by using FEPIT (Fuel Economy Policy Implementation Tool)

OUTPUT Policy intensive level Excise tax Circulation tax Fuel tax toward the desired FE target

Projection of Market share

Projection of Fuel Consumption for Passenger car amp Pickup truck

bull Determine impacts on Owner (customer) lsquos viewpoint (comparing by Net Present Value in 20 years)

By variations of Capital cost Vehicle price at factory gate (with improvement of Fuel Economydagger)

Capital cost Excise tax change

Annual registration tax change

Fuel expense decrease with FE improvement change with fuel price

Maintenance cost depended on technology (cost for EV is higher for battery replacement)

bull Determine impacts on government lsquos viewpoint (eg fuel saving CO2 reduction government income taxes)

FEPIT Tool ndash Fuel Economy Implementation Tool ICCT (International Council on Clean Transportation)

daggerCost curve with FE improvement ndash mainly from ICCT

ASEAN German Technical Cooperation ndash Transport and Climate Change

15

Updated FE database for new Passenger Light Duty Vehicle (PLDV)

Vehicle typesNew sale (Top 10 ranked vehicles) Weighted-average FC (Lge100 km)

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

1 Eco car 187429 118519 87745 114095 156234 488 489 488 475 476

2 City car subcompact Sedan amp

Hatchback

271018 167522 117548 76447 86200 599 598 578 585 582

3 Compact car C-segment

Sedan Hatchback Coupe Roadster

89975 66586 40624 47820 53797 645 651 655 619 614

4 D-segment full size sedan 34363 19343 16407 12312 9118 722 733 711 725 725

5 mini-MPV and B-SUV 42046 41046 50690 39417 40293 744 695 662 625 625

6 SUV and MPV 10307 10617 14332 13790 22974 883 774 759 774 748

7 PPV 58942 48646 69063 60683 59576 952 917 843 815 815

8 Single cab pickup 75024 51325 50851 48127 44485 765 766 760 740 736

9 Extra cab pickup 278019 206130 168236 176758 186727 769 770 769 740 744

10 4 doors pickup 164650 114385 107986 108602 157299 855 856 858 796 791

Sub-total vehicle ( share of

total vehicle registration)

1211773

(9325)

844119

(9328)

723482

(9088)

698051

(8602)

816703

(8879)

DLT new registers 1299508 904969 796089 811518 919820

Annual weighted-average FC 698 701 708 681 675

FC change 04 09 -38 -09

Weight Average FE of Passenger Light Duty Vehicles (PLDV) sales during 2013-2017

Ref GIZ study based on data from Department of Land Transporthttpwwwfiafoundationorgmedia45112wp11-iea-report-update-2014pdfhttpswwwglobalfueleconomyorgmedia418761wp15-ldv-comparisonpdf

ASEAN German Technical Cooperation ndash Transport and Climate Change

54 59 5869 79 77

71 76 76

2013 2014 2015

16

Vehicles classification for FEPIT tool

ASEAN German Technical Cooperation ndash Transport and Climate Change

2016 Data

Vehicle types

Corrected data Prepared data for FEPIT input

Weighted-average FC

(Lge100 km)

Vehicle class FC range

(Lge100km)

CO2 range

(gCO2km)

Passenger car 2016 average (568)

BEV 15 357

PHEV 30 714

1 Eco car 475 HEV 53 1261

2 City car subcompact 585 ECO Car 2 lt 43 lt 1023

3 Compact car C-segment 619 Eco Car 1 43 ndash 51 1023 ndash 1213

4 D-segment full size sedan 725 Compact car 51 ndash 63 1213 ndash 1499

5 mini-MPV and B-SUV 625 Mini-MPV B-SUV 63 ndash 84 1499 ndash 1998

6 SUV and MPV 774 SUV Full size MPV gt 84 gt 1998

Pickup based 2016 average (767)(singlespacedouble cabs amp PPV) BEV 2638 6275

PHEV 4475 10645

HEV 6313 15015

ICE1 lt 51 lt 1213

7 PPV 815 ICE2 51 ndash 63 1213 ndash 1499

8 Single cab pickup 740 ICE3 63 ndash 74 1499 ndash 1760

9 Extra cab pickup 740 ICE4 74 ndash 84 1760 ndash 1998

10 4 doors pickup 796 ICE5 gt 84 gt 1998

PLDV average 681

Exci

se ta

x st

ruct

urebull Thai excise tax rate use

different criteria between

passenger car (tougher)

and pickup truck (more

lenient)

bull Even within pickup truck

with same CO2

emissionkm excise tax

rates are different

1 lt 15 lt 2 compartments

17

FEPIT prediction of new passenger car mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Label shows average FE [Lge100km]

in that vehicle segment which

improved with FEPIT estimationProjection

Passenger car

2016 2030

Projection

568 366 Lge100km

(2016) (2030)

18

FEPIT prediction of new pickup truck mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Projection

Pickup based (SingleSpaceDouble Cabs amp PPV)

2016 2030

Projection

767 494 Lge100km

(2016) (2030)

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 4: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

4

Impacts of road transport by vehicle type in Thailand

ASEAN German Technical Cooperation ndash Transport and Climate Change

Passenger Light Duty Vehicles (PLDV)share large contribution in road transport

5

FE Policy in ASEAN amp Thailand

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwaseanorgstorage20160111publicationKUALA_LUMPUR_TRANSPORT_STRATEGIC_PLANpdf

httpwwwaseanenergyorgwp-contentuploads201512HighRes-APAEC-online-version-finalpdf

httpwwwratchakitchasocgothDATAPDF2559A1151PDF

ASEAN Cooperation in Transportation Fuel Economy

TRANSPORT

sustainable transport

standards regulations

ENERGY

20 improvement of

energy intensity

National Economic and Social Development Plan

improve energy efficiencyby introducing

CO2-based excise tax

6

Thailand policy on fuel economy NDC amp EEP

EEP Energy Efficiency Plan

GHG reduction in transportation sector

NDC

Nationally Determined Contribution ASEAN German Technical Cooperation ndash Transport and Climate Change

7

Thailand position in the world and possibility to improve vehicle FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

8

Government activities to improve FE of new vehicles

bull Thailand vehicle excise tax structure

ASEAN German Technical Cooperation ndash Transport and Climate Change

Tax Structure Before Janrsquo2016 Tax Structure Eff 1 Jan 2016

HEV-PPV le175 gkm= 23

HEV-DC le175 gkm= 10

EV tax=2

Hybrid tax divide 2

Updated on 20 June 2018

Updated on 20 June 2018

Dec 2012

for implementation

on 1 Jan 2016

9

Government activities to improve FE of new vehicles

bull Thailand vehicle excise tax structure

ASEAN German Technical Cooperation ndash Transport and Climate Change

4 5 5) Suggested Price (Excise Tax Rate)

Updated on

16 September 2017

10

Fuel Efficiency Policies in the Land Transport Sector in Thailand

bull A study of the Transport and Climate Change (TCC)

Phase I

1 To collect necessary data and conduct a policy inventory related to fuel efficiency policies and measures

2 To use this policy inventory to conduct a gap analysis of what is missing for increased energy efficiency for PCs and MCs

3 To identify key issues barriers opportunities and recommendations for advancing fuel efficiency policies in Thailand

Phase II

1 To create a template for FE data collection to update the data (up to year 2017) and the policiesmeasures related to fuel efficiency and to analyse the impact of existing FE policies and to provide the recommendations for FE improvement

2 To analyse COST-BENEFIT OF FE POLICIESMEASURES implementation and model the IMPACTS OF POSSIBLE SCENARIOS and create recommendationskey considerations on implementing proposed FE policiesmeasurements and improving the FE technology

3 To create common understanding and good cooperation among stakeholders including government private sector and customer groups regarding the improvement of fuel efficiency of passenger cars and motorcycles in Thailand

4 To push forward advance FE policiesmeasures to actual implementation

ASEAN German Technical Cooperation ndash Transport and Climate Change

Phase IPhase II (Draft)

httpswwwtransportandclimatechangeorg

11

Scenario definition of FE development 2016 2030

According on current situation nominal improvement rate GFEI Target

ASEAN German Technical Cooperation ndash Transport and Climate Change

bull Current NO FE improvement

According to

GFEI Global

Target

bull BAU FE improvement of 10 annual rate

bull GFEI Target - FE improvement of 31 annual rate Projection toward

44 Lge100km at 2030

(market average for

PC amp PU) then assume FE

improvement at constant rate

of 10 annually

12

3 Proposals of Fuel Economy Improvement measures

Aims of ldquoCost Benefit Analysisrdquo

To analyze cost benefit of proposed

FE policymeasure implementation

To model the impacts of possible scenario and

To create recommendationskey considerations

on implementing proposed FE policymeasures

and improving the FE technology

ASEAN German Technical Cooperation ndash Transport and Climate Change

Revise the Excise tax scheme

for new vehicles

Improve Eco-sticker

Revise Fuel tax

Annual registration tax

13

Required FE policy toward desired FE target

bull Focusing on 3 Proposals of Fuel Economy Improvement measures

ASEAN German Technical Cooperation ndash Transport and Climate Change

Assumption BAUAssumptions for

GFEI target scenario

Industry baseline for FC improvement rate 100 100

Impact of eco-sticker on FC improvement rate - 01

Linear slope of excise tax

[THB(gCO2km)]

Passenger car 3145 4029

Pickup truck 1044 1999

Linear slope of annual

registration tax [THB(gCO2km)]

Passenger car As a function of engine size 110

Pickup truck As a function of vehicle curb weight 132

Fuel tax increase () Static fuel price 20

Target 2016 2030

PC 568 366

PU 767 494

Average 681 438

14

Methodology of the COST BENEFIT ANALYSIS

bull Impacts projection of FE policy by using FEPIT (Fuel Economy Policy Implementation Tool)

OUTPUT Policy intensive level Excise tax Circulation tax Fuel tax toward the desired FE target

Projection of Market share

Projection of Fuel Consumption for Passenger car amp Pickup truck

bull Determine impacts on Owner (customer) lsquos viewpoint (comparing by Net Present Value in 20 years)

By variations of Capital cost Vehicle price at factory gate (with improvement of Fuel Economydagger)

Capital cost Excise tax change

Annual registration tax change

Fuel expense decrease with FE improvement change with fuel price

Maintenance cost depended on technology (cost for EV is higher for battery replacement)

bull Determine impacts on government lsquos viewpoint (eg fuel saving CO2 reduction government income taxes)

FEPIT Tool ndash Fuel Economy Implementation Tool ICCT (International Council on Clean Transportation)

daggerCost curve with FE improvement ndash mainly from ICCT

ASEAN German Technical Cooperation ndash Transport and Climate Change

15

Updated FE database for new Passenger Light Duty Vehicle (PLDV)

Vehicle typesNew sale (Top 10 ranked vehicles) Weighted-average FC (Lge100 km)

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

1 Eco car 187429 118519 87745 114095 156234 488 489 488 475 476

2 City car subcompact Sedan amp

Hatchback

271018 167522 117548 76447 86200 599 598 578 585 582

3 Compact car C-segment

Sedan Hatchback Coupe Roadster

89975 66586 40624 47820 53797 645 651 655 619 614

4 D-segment full size sedan 34363 19343 16407 12312 9118 722 733 711 725 725

5 mini-MPV and B-SUV 42046 41046 50690 39417 40293 744 695 662 625 625

6 SUV and MPV 10307 10617 14332 13790 22974 883 774 759 774 748

7 PPV 58942 48646 69063 60683 59576 952 917 843 815 815

8 Single cab pickup 75024 51325 50851 48127 44485 765 766 760 740 736

9 Extra cab pickup 278019 206130 168236 176758 186727 769 770 769 740 744

10 4 doors pickup 164650 114385 107986 108602 157299 855 856 858 796 791

Sub-total vehicle ( share of

total vehicle registration)

1211773

(9325)

844119

(9328)

723482

(9088)

698051

(8602)

816703

(8879)

DLT new registers 1299508 904969 796089 811518 919820

Annual weighted-average FC 698 701 708 681 675

FC change 04 09 -38 -09

Weight Average FE of Passenger Light Duty Vehicles (PLDV) sales during 2013-2017

Ref GIZ study based on data from Department of Land Transporthttpwwwfiafoundationorgmedia45112wp11-iea-report-update-2014pdfhttpswwwglobalfueleconomyorgmedia418761wp15-ldv-comparisonpdf

ASEAN German Technical Cooperation ndash Transport and Climate Change

54 59 5869 79 77

71 76 76

2013 2014 2015

16

Vehicles classification for FEPIT tool

ASEAN German Technical Cooperation ndash Transport and Climate Change

2016 Data

Vehicle types

Corrected data Prepared data for FEPIT input

Weighted-average FC

(Lge100 km)

Vehicle class FC range

(Lge100km)

CO2 range

(gCO2km)

Passenger car 2016 average (568)

BEV 15 357

PHEV 30 714

1 Eco car 475 HEV 53 1261

2 City car subcompact 585 ECO Car 2 lt 43 lt 1023

3 Compact car C-segment 619 Eco Car 1 43 ndash 51 1023 ndash 1213

4 D-segment full size sedan 725 Compact car 51 ndash 63 1213 ndash 1499

5 mini-MPV and B-SUV 625 Mini-MPV B-SUV 63 ndash 84 1499 ndash 1998

6 SUV and MPV 774 SUV Full size MPV gt 84 gt 1998

Pickup based 2016 average (767)(singlespacedouble cabs amp PPV) BEV 2638 6275

PHEV 4475 10645

HEV 6313 15015

ICE1 lt 51 lt 1213

7 PPV 815 ICE2 51 ndash 63 1213 ndash 1499

8 Single cab pickup 740 ICE3 63 ndash 74 1499 ndash 1760

9 Extra cab pickup 740 ICE4 74 ndash 84 1760 ndash 1998

10 4 doors pickup 796 ICE5 gt 84 gt 1998

PLDV average 681

Exci

se ta

x st

ruct

urebull Thai excise tax rate use

different criteria between

passenger car (tougher)

and pickup truck (more

lenient)

bull Even within pickup truck

with same CO2

emissionkm excise tax

rates are different

1 lt 15 lt 2 compartments

17

FEPIT prediction of new passenger car mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Label shows average FE [Lge100km]

in that vehicle segment which

improved with FEPIT estimationProjection

Passenger car

2016 2030

Projection

568 366 Lge100km

(2016) (2030)

18

FEPIT prediction of new pickup truck mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Projection

Pickup based (SingleSpaceDouble Cabs amp PPV)

2016 2030

Projection

767 494 Lge100km

(2016) (2030)

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 5: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

5

FE Policy in ASEAN amp Thailand

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwaseanorgstorage20160111publicationKUALA_LUMPUR_TRANSPORT_STRATEGIC_PLANpdf

httpwwwaseanenergyorgwp-contentuploads201512HighRes-APAEC-online-version-finalpdf

httpwwwratchakitchasocgothDATAPDF2559A1151PDF

ASEAN Cooperation in Transportation Fuel Economy

TRANSPORT

sustainable transport

standards regulations

ENERGY

20 improvement of

energy intensity

National Economic and Social Development Plan

improve energy efficiencyby introducing

CO2-based excise tax

6

Thailand policy on fuel economy NDC amp EEP

EEP Energy Efficiency Plan

GHG reduction in transportation sector

NDC

Nationally Determined Contribution ASEAN German Technical Cooperation ndash Transport and Climate Change

7

Thailand position in the world and possibility to improve vehicle FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

8

Government activities to improve FE of new vehicles

bull Thailand vehicle excise tax structure

ASEAN German Technical Cooperation ndash Transport and Climate Change

Tax Structure Before Janrsquo2016 Tax Structure Eff 1 Jan 2016

HEV-PPV le175 gkm= 23

HEV-DC le175 gkm= 10

EV tax=2

Hybrid tax divide 2

Updated on 20 June 2018

Updated on 20 June 2018

Dec 2012

for implementation

on 1 Jan 2016

9

Government activities to improve FE of new vehicles

bull Thailand vehicle excise tax structure

ASEAN German Technical Cooperation ndash Transport and Climate Change

4 5 5) Suggested Price (Excise Tax Rate)

Updated on

16 September 2017

10

Fuel Efficiency Policies in the Land Transport Sector in Thailand

bull A study of the Transport and Climate Change (TCC)

Phase I

1 To collect necessary data and conduct a policy inventory related to fuel efficiency policies and measures

2 To use this policy inventory to conduct a gap analysis of what is missing for increased energy efficiency for PCs and MCs

3 To identify key issues barriers opportunities and recommendations for advancing fuel efficiency policies in Thailand

Phase II

1 To create a template for FE data collection to update the data (up to year 2017) and the policiesmeasures related to fuel efficiency and to analyse the impact of existing FE policies and to provide the recommendations for FE improvement

2 To analyse COST-BENEFIT OF FE POLICIESMEASURES implementation and model the IMPACTS OF POSSIBLE SCENARIOS and create recommendationskey considerations on implementing proposed FE policiesmeasurements and improving the FE technology

3 To create common understanding and good cooperation among stakeholders including government private sector and customer groups regarding the improvement of fuel efficiency of passenger cars and motorcycles in Thailand

4 To push forward advance FE policiesmeasures to actual implementation

ASEAN German Technical Cooperation ndash Transport and Climate Change

Phase IPhase II (Draft)

httpswwwtransportandclimatechangeorg

11

Scenario definition of FE development 2016 2030

According on current situation nominal improvement rate GFEI Target

ASEAN German Technical Cooperation ndash Transport and Climate Change

bull Current NO FE improvement

According to

GFEI Global

Target

bull BAU FE improvement of 10 annual rate

bull GFEI Target - FE improvement of 31 annual rate Projection toward

44 Lge100km at 2030

(market average for

PC amp PU) then assume FE

improvement at constant rate

of 10 annually

12

3 Proposals of Fuel Economy Improvement measures

Aims of ldquoCost Benefit Analysisrdquo

To analyze cost benefit of proposed

FE policymeasure implementation

To model the impacts of possible scenario and

To create recommendationskey considerations

on implementing proposed FE policymeasures

and improving the FE technology

ASEAN German Technical Cooperation ndash Transport and Climate Change

Revise the Excise tax scheme

for new vehicles

Improve Eco-sticker

Revise Fuel tax

Annual registration tax

13

Required FE policy toward desired FE target

bull Focusing on 3 Proposals of Fuel Economy Improvement measures

ASEAN German Technical Cooperation ndash Transport and Climate Change

Assumption BAUAssumptions for

GFEI target scenario

Industry baseline for FC improvement rate 100 100

Impact of eco-sticker on FC improvement rate - 01

Linear slope of excise tax

[THB(gCO2km)]

Passenger car 3145 4029

Pickup truck 1044 1999

Linear slope of annual

registration tax [THB(gCO2km)]

Passenger car As a function of engine size 110

Pickup truck As a function of vehicle curb weight 132

Fuel tax increase () Static fuel price 20

Target 2016 2030

PC 568 366

PU 767 494

Average 681 438

14

Methodology of the COST BENEFIT ANALYSIS

bull Impacts projection of FE policy by using FEPIT (Fuel Economy Policy Implementation Tool)

OUTPUT Policy intensive level Excise tax Circulation tax Fuel tax toward the desired FE target

Projection of Market share

Projection of Fuel Consumption for Passenger car amp Pickup truck

bull Determine impacts on Owner (customer) lsquos viewpoint (comparing by Net Present Value in 20 years)

By variations of Capital cost Vehicle price at factory gate (with improvement of Fuel Economydagger)

Capital cost Excise tax change

Annual registration tax change

Fuel expense decrease with FE improvement change with fuel price

Maintenance cost depended on technology (cost for EV is higher for battery replacement)

bull Determine impacts on government lsquos viewpoint (eg fuel saving CO2 reduction government income taxes)

FEPIT Tool ndash Fuel Economy Implementation Tool ICCT (International Council on Clean Transportation)

daggerCost curve with FE improvement ndash mainly from ICCT

ASEAN German Technical Cooperation ndash Transport and Climate Change

15

Updated FE database for new Passenger Light Duty Vehicle (PLDV)

Vehicle typesNew sale (Top 10 ranked vehicles) Weighted-average FC (Lge100 km)

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

1 Eco car 187429 118519 87745 114095 156234 488 489 488 475 476

2 City car subcompact Sedan amp

Hatchback

271018 167522 117548 76447 86200 599 598 578 585 582

3 Compact car C-segment

Sedan Hatchback Coupe Roadster

89975 66586 40624 47820 53797 645 651 655 619 614

4 D-segment full size sedan 34363 19343 16407 12312 9118 722 733 711 725 725

5 mini-MPV and B-SUV 42046 41046 50690 39417 40293 744 695 662 625 625

6 SUV and MPV 10307 10617 14332 13790 22974 883 774 759 774 748

7 PPV 58942 48646 69063 60683 59576 952 917 843 815 815

8 Single cab pickup 75024 51325 50851 48127 44485 765 766 760 740 736

9 Extra cab pickup 278019 206130 168236 176758 186727 769 770 769 740 744

10 4 doors pickup 164650 114385 107986 108602 157299 855 856 858 796 791

Sub-total vehicle ( share of

total vehicle registration)

1211773

(9325)

844119

(9328)

723482

(9088)

698051

(8602)

816703

(8879)

DLT new registers 1299508 904969 796089 811518 919820

Annual weighted-average FC 698 701 708 681 675

FC change 04 09 -38 -09

Weight Average FE of Passenger Light Duty Vehicles (PLDV) sales during 2013-2017

Ref GIZ study based on data from Department of Land Transporthttpwwwfiafoundationorgmedia45112wp11-iea-report-update-2014pdfhttpswwwglobalfueleconomyorgmedia418761wp15-ldv-comparisonpdf

ASEAN German Technical Cooperation ndash Transport and Climate Change

54 59 5869 79 77

71 76 76

2013 2014 2015

16

Vehicles classification for FEPIT tool

ASEAN German Technical Cooperation ndash Transport and Climate Change

2016 Data

Vehicle types

Corrected data Prepared data for FEPIT input

Weighted-average FC

(Lge100 km)

Vehicle class FC range

(Lge100km)

CO2 range

(gCO2km)

Passenger car 2016 average (568)

BEV 15 357

PHEV 30 714

1 Eco car 475 HEV 53 1261

2 City car subcompact 585 ECO Car 2 lt 43 lt 1023

3 Compact car C-segment 619 Eco Car 1 43 ndash 51 1023 ndash 1213

4 D-segment full size sedan 725 Compact car 51 ndash 63 1213 ndash 1499

5 mini-MPV and B-SUV 625 Mini-MPV B-SUV 63 ndash 84 1499 ndash 1998

6 SUV and MPV 774 SUV Full size MPV gt 84 gt 1998

Pickup based 2016 average (767)(singlespacedouble cabs amp PPV) BEV 2638 6275

PHEV 4475 10645

HEV 6313 15015

ICE1 lt 51 lt 1213

7 PPV 815 ICE2 51 ndash 63 1213 ndash 1499

8 Single cab pickup 740 ICE3 63 ndash 74 1499 ndash 1760

9 Extra cab pickup 740 ICE4 74 ndash 84 1760 ndash 1998

10 4 doors pickup 796 ICE5 gt 84 gt 1998

PLDV average 681

Exci

se ta

x st

ruct

urebull Thai excise tax rate use

different criteria between

passenger car (tougher)

and pickup truck (more

lenient)

bull Even within pickup truck

with same CO2

emissionkm excise tax

rates are different

1 lt 15 lt 2 compartments

17

FEPIT prediction of new passenger car mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Label shows average FE [Lge100km]

in that vehicle segment which

improved with FEPIT estimationProjection

Passenger car

2016 2030

Projection

568 366 Lge100km

(2016) (2030)

18

FEPIT prediction of new pickup truck mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Projection

Pickup based (SingleSpaceDouble Cabs amp PPV)

2016 2030

Projection

767 494 Lge100km

(2016) (2030)

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 6: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

6

Thailand policy on fuel economy NDC amp EEP

EEP Energy Efficiency Plan

GHG reduction in transportation sector

NDC

Nationally Determined Contribution ASEAN German Technical Cooperation ndash Transport and Climate Change

7

Thailand position in the world and possibility to improve vehicle FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

8

Government activities to improve FE of new vehicles

bull Thailand vehicle excise tax structure

ASEAN German Technical Cooperation ndash Transport and Climate Change

Tax Structure Before Janrsquo2016 Tax Structure Eff 1 Jan 2016

HEV-PPV le175 gkm= 23

HEV-DC le175 gkm= 10

EV tax=2

Hybrid tax divide 2

Updated on 20 June 2018

Updated on 20 June 2018

Dec 2012

for implementation

on 1 Jan 2016

9

Government activities to improve FE of new vehicles

bull Thailand vehicle excise tax structure

ASEAN German Technical Cooperation ndash Transport and Climate Change

4 5 5) Suggested Price (Excise Tax Rate)

Updated on

16 September 2017

10

Fuel Efficiency Policies in the Land Transport Sector in Thailand

bull A study of the Transport and Climate Change (TCC)

Phase I

1 To collect necessary data and conduct a policy inventory related to fuel efficiency policies and measures

2 To use this policy inventory to conduct a gap analysis of what is missing for increased energy efficiency for PCs and MCs

3 To identify key issues barriers opportunities and recommendations for advancing fuel efficiency policies in Thailand

Phase II

1 To create a template for FE data collection to update the data (up to year 2017) and the policiesmeasures related to fuel efficiency and to analyse the impact of existing FE policies and to provide the recommendations for FE improvement

2 To analyse COST-BENEFIT OF FE POLICIESMEASURES implementation and model the IMPACTS OF POSSIBLE SCENARIOS and create recommendationskey considerations on implementing proposed FE policiesmeasurements and improving the FE technology

3 To create common understanding and good cooperation among stakeholders including government private sector and customer groups regarding the improvement of fuel efficiency of passenger cars and motorcycles in Thailand

4 To push forward advance FE policiesmeasures to actual implementation

ASEAN German Technical Cooperation ndash Transport and Climate Change

Phase IPhase II (Draft)

httpswwwtransportandclimatechangeorg

11

Scenario definition of FE development 2016 2030

According on current situation nominal improvement rate GFEI Target

ASEAN German Technical Cooperation ndash Transport and Climate Change

bull Current NO FE improvement

According to

GFEI Global

Target

bull BAU FE improvement of 10 annual rate

bull GFEI Target - FE improvement of 31 annual rate Projection toward

44 Lge100km at 2030

(market average for

PC amp PU) then assume FE

improvement at constant rate

of 10 annually

12

3 Proposals of Fuel Economy Improvement measures

Aims of ldquoCost Benefit Analysisrdquo

To analyze cost benefit of proposed

FE policymeasure implementation

To model the impacts of possible scenario and

To create recommendationskey considerations

on implementing proposed FE policymeasures

and improving the FE technology

ASEAN German Technical Cooperation ndash Transport and Climate Change

Revise the Excise tax scheme

for new vehicles

Improve Eco-sticker

Revise Fuel tax

Annual registration tax

13

Required FE policy toward desired FE target

bull Focusing on 3 Proposals of Fuel Economy Improvement measures

ASEAN German Technical Cooperation ndash Transport and Climate Change

Assumption BAUAssumptions for

GFEI target scenario

Industry baseline for FC improvement rate 100 100

Impact of eco-sticker on FC improvement rate - 01

Linear slope of excise tax

[THB(gCO2km)]

Passenger car 3145 4029

Pickup truck 1044 1999

Linear slope of annual

registration tax [THB(gCO2km)]

Passenger car As a function of engine size 110

Pickup truck As a function of vehicle curb weight 132

Fuel tax increase () Static fuel price 20

Target 2016 2030

PC 568 366

PU 767 494

Average 681 438

14

Methodology of the COST BENEFIT ANALYSIS

bull Impacts projection of FE policy by using FEPIT (Fuel Economy Policy Implementation Tool)

OUTPUT Policy intensive level Excise tax Circulation tax Fuel tax toward the desired FE target

Projection of Market share

Projection of Fuel Consumption for Passenger car amp Pickup truck

bull Determine impacts on Owner (customer) lsquos viewpoint (comparing by Net Present Value in 20 years)

By variations of Capital cost Vehicle price at factory gate (with improvement of Fuel Economydagger)

Capital cost Excise tax change

Annual registration tax change

Fuel expense decrease with FE improvement change with fuel price

Maintenance cost depended on technology (cost for EV is higher for battery replacement)

bull Determine impacts on government lsquos viewpoint (eg fuel saving CO2 reduction government income taxes)

FEPIT Tool ndash Fuel Economy Implementation Tool ICCT (International Council on Clean Transportation)

daggerCost curve with FE improvement ndash mainly from ICCT

ASEAN German Technical Cooperation ndash Transport and Climate Change

15

Updated FE database for new Passenger Light Duty Vehicle (PLDV)

Vehicle typesNew sale (Top 10 ranked vehicles) Weighted-average FC (Lge100 km)

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

1 Eco car 187429 118519 87745 114095 156234 488 489 488 475 476

2 City car subcompact Sedan amp

Hatchback

271018 167522 117548 76447 86200 599 598 578 585 582

3 Compact car C-segment

Sedan Hatchback Coupe Roadster

89975 66586 40624 47820 53797 645 651 655 619 614

4 D-segment full size sedan 34363 19343 16407 12312 9118 722 733 711 725 725

5 mini-MPV and B-SUV 42046 41046 50690 39417 40293 744 695 662 625 625

6 SUV and MPV 10307 10617 14332 13790 22974 883 774 759 774 748

7 PPV 58942 48646 69063 60683 59576 952 917 843 815 815

8 Single cab pickup 75024 51325 50851 48127 44485 765 766 760 740 736

9 Extra cab pickup 278019 206130 168236 176758 186727 769 770 769 740 744

10 4 doors pickup 164650 114385 107986 108602 157299 855 856 858 796 791

Sub-total vehicle ( share of

total vehicle registration)

1211773

(9325)

844119

(9328)

723482

(9088)

698051

(8602)

816703

(8879)

DLT new registers 1299508 904969 796089 811518 919820

Annual weighted-average FC 698 701 708 681 675

FC change 04 09 -38 -09

Weight Average FE of Passenger Light Duty Vehicles (PLDV) sales during 2013-2017

Ref GIZ study based on data from Department of Land Transporthttpwwwfiafoundationorgmedia45112wp11-iea-report-update-2014pdfhttpswwwglobalfueleconomyorgmedia418761wp15-ldv-comparisonpdf

ASEAN German Technical Cooperation ndash Transport and Climate Change

54 59 5869 79 77

71 76 76

2013 2014 2015

16

Vehicles classification for FEPIT tool

ASEAN German Technical Cooperation ndash Transport and Climate Change

2016 Data

Vehicle types

Corrected data Prepared data for FEPIT input

Weighted-average FC

(Lge100 km)

Vehicle class FC range

(Lge100km)

CO2 range

(gCO2km)

Passenger car 2016 average (568)

BEV 15 357

PHEV 30 714

1 Eco car 475 HEV 53 1261

2 City car subcompact 585 ECO Car 2 lt 43 lt 1023

3 Compact car C-segment 619 Eco Car 1 43 ndash 51 1023 ndash 1213

4 D-segment full size sedan 725 Compact car 51 ndash 63 1213 ndash 1499

5 mini-MPV and B-SUV 625 Mini-MPV B-SUV 63 ndash 84 1499 ndash 1998

6 SUV and MPV 774 SUV Full size MPV gt 84 gt 1998

Pickup based 2016 average (767)(singlespacedouble cabs amp PPV) BEV 2638 6275

PHEV 4475 10645

HEV 6313 15015

ICE1 lt 51 lt 1213

7 PPV 815 ICE2 51 ndash 63 1213 ndash 1499

8 Single cab pickup 740 ICE3 63 ndash 74 1499 ndash 1760

9 Extra cab pickup 740 ICE4 74 ndash 84 1760 ndash 1998

10 4 doors pickup 796 ICE5 gt 84 gt 1998

PLDV average 681

Exci

se ta

x st

ruct

urebull Thai excise tax rate use

different criteria between

passenger car (tougher)

and pickup truck (more

lenient)

bull Even within pickup truck

with same CO2

emissionkm excise tax

rates are different

1 lt 15 lt 2 compartments

17

FEPIT prediction of new passenger car mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Label shows average FE [Lge100km]

in that vehicle segment which

improved with FEPIT estimationProjection

Passenger car

2016 2030

Projection

568 366 Lge100km

(2016) (2030)

18

FEPIT prediction of new pickup truck mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Projection

Pickup based (SingleSpaceDouble Cabs amp PPV)

2016 2030

Projection

767 494 Lge100km

(2016) (2030)

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 7: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

7

Thailand position in the world and possibility to improve vehicle FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

8

Government activities to improve FE of new vehicles

bull Thailand vehicle excise tax structure

ASEAN German Technical Cooperation ndash Transport and Climate Change

Tax Structure Before Janrsquo2016 Tax Structure Eff 1 Jan 2016

HEV-PPV le175 gkm= 23

HEV-DC le175 gkm= 10

EV tax=2

Hybrid tax divide 2

Updated on 20 June 2018

Updated on 20 June 2018

Dec 2012

for implementation

on 1 Jan 2016

9

Government activities to improve FE of new vehicles

bull Thailand vehicle excise tax structure

ASEAN German Technical Cooperation ndash Transport and Climate Change

4 5 5) Suggested Price (Excise Tax Rate)

Updated on

16 September 2017

10

Fuel Efficiency Policies in the Land Transport Sector in Thailand

bull A study of the Transport and Climate Change (TCC)

Phase I

1 To collect necessary data and conduct a policy inventory related to fuel efficiency policies and measures

2 To use this policy inventory to conduct a gap analysis of what is missing for increased energy efficiency for PCs and MCs

3 To identify key issues barriers opportunities and recommendations for advancing fuel efficiency policies in Thailand

Phase II

1 To create a template for FE data collection to update the data (up to year 2017) and the policiesmeasures related to fuel efficiency and to analyse the impact of existing FE policies and to provide the recommendations for FE improvement

2 To analyse COST-BENEFIT OF FE POLICIESMEASURES implementation and model the IMPACTS OF POSSIBLE SCENARIOS and create recommendationskey considerations on implementing proposed FE policiesmeasurements and improving the FE technology

3 To create common understanding and good cooperation among stakeholders including government private sector and customer groups regarding the improvement of fuel efficiency of passenger cars and motorcycles in Thailand

4 To push forward advance FE policiesmeasures to actual implementation

ASEAN German Technical Cooperation ndash Transport and Climate Change

Phase IPhase II (Draft)

httpswwwtransportandclimatechangeorg

11

Scenario definition of FE development 2016 2030

According on current situation nominal improvement rate GFEI Target

ASEAN German Technical Cooperation ndash Transport and Climate Change

bull Current NO FE improvement

According to

GFEI Global

Target

bull BAU FE improvement of 10 annual rate

bull GFEI Target - FE improvement of 31 annual rate Projection toward

44 Lge100km at 2030

(market average for

PC amp PU) then assume FE

improvement at constant rate

of 10 annually

12

3 Proposals of Fuel Economy Improvement measures

Aims of ldquoCost Benefit Analysisrdquo

To analyze cost benefit of proposed

FE policymeasure implementation

To model the impacts of possible scenario and

To create recommendationskey considerations

on implementing proposed FE policymeasures

and improving the FE technology

ASEAN German Technical Cooperation ndash Transport and Climate Change

Revise the Excise tax scheme

for new vehicles

Improve Eco-sticker

Revise Fuel tax

Annual registration tax

13

Required FE policy toward desired FE target

bull Focusing on 3 Proposals of Fuel Economy Improvement measures

ASEAN German Technical Cooperation ndash Transport and Climate Change

Assumption BAUAssumptions for

GFEI target scenario

Industry baseline for FC improvement rate 100 100

Impact of eco-sticker on FC improvement rate - 01

Linear slope of excise tax

[THB(gCO2km)]

Passenger car 3145 4029

Pickup truck 1044 1999

Linear slope of annual

registration tax [THB(gCO2km)]

Passenger car As a function of engine size 110

Pickup truck As a function of vehicle curb weight 132

Fuel tax increase () Static fuel price 20

Target 2016 2030

PC 568 366

PU 767 494

Average 681 438

14

Methodology of the COST BENEFIT ANALYSIS

bull Impacts projection of FE policy by using FEPIT (Fuel Economy Policy Implementation Tool)

OUTPUT Policy intensive level Excise tax Circulation tax Fuel tax toward the desired FE target

Projection of Market share

Projection of Fuel Consumption for Passenger car amp Pickup truck

bull Determine impacts on Owner (customer) lsquos viewpoint (comparing by Net Present Value in 20 years)

By variations of Capital cost Vehicle price at factory gate (with improvement of Fuel Economydagger)

Capital cost Excise tax change

Annual registration tax change

Fuel expense decrease with FE improvement change with fuel price

Maintenance cost depended on technology (cost for EV is higher for battery replacement)

bull Determine impacts on government lsquos viewpoint (eg fuel saving CO2 reduction government income taxes)

FEPIT Tool ndash Fuel Economy Implementation Tool ICCT (International Council on Clean Transportation)

daggerCost curve with FE improvement ndash mainly from ICCT

ASEAN German Technical Cooperation ndash Transport and Climate Change

15

Updated FE database for new Passenger Light Duty Vehicle (PLDV)

Vehicle typesNew sale (Top 10 ranked vehicles) Weighted-average FC (Lge100 km)

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

1 Eco car 187429 118519 87745 114095 156234 488 489 488 475 476

2 City car subcompact Sedan amp

Hatchback

271018 167522 117548 76447 86200 599 598 578 585 582

3 Compact car C-segment

Sedan Hatchback Coupe Roadster

89975 66586 40624 47820 53797 645 651 655 619 614

4 D-segment full size sedan 34363 19343 16407 12312 9118 722 733 711 725 725

5 mini-MPV and B-SUV 42046 41046 50690 39417 40293 744 695 662 625 625

6 SUV and MPV 10307 10617 14332 13790 22974 883 774 759 774 748

7 PPV 58942 48646 69063 60683 59576 952 917 843 815 815

8 Single cab pickup 75024 51325 50851 48127 44485 765 766 760 740 736

9 Extra cab pickup 278019 206130 168236 176758 186727 769 770 769 740 744

10 4 doors pickup 164650 114385 107986 108602 157299 855 856 858 796 791

Sub-total vehicle ( share of

total vehicle registration)

1211773

(9325)

844119

(9328)

723482

(9088)

698051

(8602)

816703

(8879)

DLT new registers 1299508 904969 796089 811518 919820

Annual weighted-average FC 698 701 708 681 675

FC change 04 09 -38 -09

Weight Average FE of Passenger Light Duty Vehicles (PLDV) sales during 2013-2017

Ref GIZ study based on data from Department of Land Transporthttpwwwfiafoundationorgmedia45112wp11-iea-report-update-2014pdfhttpswwwglobalfueleconomyorgmedia418761wp15-ldv-comparisonpdf

ASEAN German Technical Cooperation ndash Transport and Climate Change

54 59 5869 79 77

71 76 76

2013 2014 2015

16

Vehicles classification for FEPIT tool

ASEAN German Technical Cooperation ndash Transport and Climate Change

2016 Data

Vehicle types

Corrected data Prepared data for FEPIT input

Weighted-average FC

(Lge100 km)

Vehicle class FC range

(Lge100km)

CO2 range

(gCO2km)

Passenger car 2016 average (568)

BEV 15 357

PHEV 30 714

1 Eco car 475 HEV 53 1261

2 City car subcompact 585 ECO Car 2 lt 43 lt 1023

3 Compact car C-segment 619 Eco Car 1 43 ndash 51 1023 ndash 1213

4 D-segment full size sedan 725 Compact car 51 ndash 63 1213 ndash 1499

5 mini-MPV and B-SUV 625 Mini-MPV B-SUV 63 ndash 84 1499 ndash 1998

6 SUV and MPV 774 SUV Full size MPV gt 84 gt 1998

Pickup based 2016 average (767)(singlespacedouble cabs amp PPV) BEV 2638 6275

PHEV 4475 10645

HEV 6313 15015

ICE1 lt 51 lt 1213

7 PPV 815 ICE2 51 ndash 63 1213 ndash 1499

8 Single cab pickup 740 ICE3 63 ndash 74 1499 ndash 1760

9 Extra cab pickup 740 ICE4 74 ndash 84 1760 ndash 1998

10 4 doors pickup 796 ICE5 gt 84 gt 1998

PLDV average 681

Exci

se ta

x st

ruct

urebull Thai excise tax rate use

different criteria between

passenger car (tougher)

and pickup truck (more

lenient)

bull Even within pickup truck

with same CO2

emissionkm excise tax

rates are different

1 lt 15 lt 2 compartments

17

FEPIT prediction of new passenger car mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Label shows average FE [Lge100km]

in that vehicle segment which

improved with FEPIT estimationProjection

Passenger car

2016 2030

Projection

568 366 Lge100km

(2016) (2030)

18

FEPIT prediction of new pickup truck mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Projection

Pickup based (SingleSpaceDouble Cabs amp PPV)

2016 2030

Projection

767 494 Lge100km

(2016) (2030)

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 8: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

8

Government activities to improve FE of new vehicles

bull Thailand vehicle excise tax structure

ASEAN German Technical Cooperation ndash Transport and Climate Change

Tax Structure Before Janrsquo2016 Tax Structure Eff 1 Jan 2016

HEV-PPV le175 gkm= 23

HEV-DC le175 gkm= 10

EV tax=2

Hybrid tax divide 2

Updated on 20 June 2018

Updated on 20 June 2018

Dec 2012

for implementation

on 1 Jan 2016

9

Government activities to improve FE of new vehicles

bull Thailand vehicle excise tax structure

ASEAN German Technical Cooperation ndash Transport and Climate Change

4 5 5) Suggested Price (Excise Tax Rate)

Updated on

16 September 2017

10

Fuel Efficiency Policies in the Land Transport Sector in Thailand

bull A study of the Transport and Climate Change (TCC)

Phase I

1 To collect necessary data and conduct a policy inventory related to fuel efficiency policies and measures

2 To use this policy inventory to conduct a gap analysis of what is missing for increased energy efficiency for PCs and MCs

3 To identify key issues barriers opportunities and recommendations for advancing fuel efficiency policies in Thailand

Phase II

1 To create a template for FE data collection to update the data (up to year 2017) and the policiesmeasures related to fuel efficiency and to analyse the impact of existing FE policies and to provide the recommendations for FE improvement

2 To analyse COST-BENEFIT OF FE POLICIESMEASURES implementation and model the IMPACTS OF POSSIBLE SCENARIOS and create recommendationskey considerations on implementing proposed FE policiesmeasurements and improving the FE technology

3 To create common understanding and good cooperation among stakeholders including government private sector and customer groups regarding the improvement of fuel efficiency of passenger cars and motorcycles in Thailand

4 To push forward advance FE policiesmeasures to actual implementation

ASEAN German Technical Cooperation ndash Transport and Climate Change

Phase IPhase II (Draft)

httpswwwtransportandclimatechangeorg

11

Scenario definition of FE development 2016 2030

According on current situation nominal improvement rate GFEI Target

ASEAN German Technical Cooperation ndash Transport and Climate Change

bull Current NO FE improvement

According to

GFEI Global

Target

bull BAU FE improvement of 10 annual rate

bull GFEI Target - FE improvement of 31 annual rate Projection toward

44 Lge100km at 2030

(market average for

PC amp PU) then assume FE

improvement at constant rate

of 10 annually

12

3 Proposals of Fuel Economy Improvement measures

Aims of ldquoCost Benefit Analysisrdquo

To analyze cost benefit of proposed

FE policymeasure implementation

To model the impacts of possible scenario and

To create recommendationskey considerations

on implementing proposed FE policymeasures

and improving the FE technology

ASEAN German Technical Cooperation ndash Transport and Climate Change

Revise the Excise tax scheme

for new vehicles

Improve Eco-sticker

Revise Fuel tax

Annual registration tax

13

Required FE policy toward desired FE target

bull Focusing on 3 Proposals of Fuel Economy Improvement measures

ASEAN German Technical Cooperation ndash Transport and Climate Change

Assumption BAUAssumptions for

GFEI target scenario

Industry baseline for FC improvement rate 100 100

Impact of eco-sticker on FC improvement rate - 01

Linear slope of excise tax

[THB(gCO2km)]

Passenger car 3145 4029

Pickup truck 1044 1999

Linear slope of annual

registration tax [THB(gCO2km)]

Passenger car As a function of engine size 110

Pickup truck As a function of vehicle curb weight 132

Fuel tax increase () Static fuel price 20

Target 2016 2030

PC 568 366

PU 767 494

Average 681 438

14

Methodology of the COST BENEFIT ANALYSIS

bull Impacts projection of FE policy by using FEPIT (Fuel Economy Policy Implementation Tool)

OUTPUT Policy intensive level Excise tax Circulation tax Fuel tax toward the desired FE target

Projection of Market share

Projection of Fuel Consumption for Passenger car amp Pickup truck

bull Determine impacts on Owner (customer) lsquos viewpoint (comparing by Net Present Value in 20 years)

By variations of Capital cost Vehicle price at factory gate (with improvement of Fuel Economydagger)

Capital cost Excise tax change

Annual registration tax change

Fuel expense decrease with FE improvement change with fuel price

Maintenance cost depended on technology (cost for EV is higher for battery replacement)

bull Determine impacts on government lsquos viewpoint (eg fuel saving CO2 reduction government income taxes)

FEPIT Tool ndash Fuel Economy Implementation Tool ICCT (International Council on Clean Transportation)

daggerCost curve with FE improvement ndash mainly from ICCT

ASEAN German Technical Cooperation ndash Transport and Climate Change

15

Updated FE database for new Passenger Light Duty Vehicle (PLDV)

Vehicle typesNew sale (Top 10 ranked vehicles) Weighted-average FC (Lge100 km)

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

1 Eco car 187429 118519 87745 114095 156234 488 489 488 475 476

2 City car subcompact Sedan amp

Hatchback

271018 167522 117548 76447 86200 599 598 578 585 582

3 Compact car C-segment

Sedan Hatchback Coupe Roadster

89975 66586 40624 47820 53797 645 651 655 619 614

4 D-segment full size sedan 34363 19343 16407 12312 9118 722 733 711 725 725

5 mini-MPV and B-SUV 42046 41046 50690 39417 40293 744 695 662 625 625

6 SUV and MPV 10307 10617 14332 13790 22974 883 774 759 774 748

7 PPV 58942 48646 69063 60683 59576 952 917 843 815 815

8 Single cab pickup 75024 51325 50851 48127 44485 765 766 760 740 736

9 Extra cab pickup 278019 206130 168236 176758 186727 769 770 769 740 744

10 4 doors pickup 164650 114385 107986 108602 157299 855 856 858 796 791

Sub-total vehicle ( share of

total vehicle registration)

1211773

(9325)

844119

(9328)

723482

(9088)

698051

(8602)

816703

(8879)

DLT new registers 1299508 904969 796089 811518 919820

Annual weighted-average FC 698 701 708 681 675

FC change 04 09 -38 -09

Weight Average FE of Passenger Light Duty Vehicles (PLDV) sales during 2013-2017

Ref GIZ study based on data from Department of Land Transporthttpwwwfiafoundationorgmedia45112wp11-iea-report-update-2014pdfhttpswwwglobalfueleconomyorgmedia418761wp15-ldv-comparisonpdf

ASEAN German Technical Cooperation ndash Transport and Climate Change

54 59 5869 79 77

71 76 76

2013 2014 2015

16

Vehicles classification for FEPIT tool

ASEAN German Technical Cooperation ndash Transport and Climate Change

2016 Data

Vehicle types

Corrected data Prepared data for FEPIT input

Weighted-average FC

(Lge100 km)

Vehicle class FC range

(Lge100km)

CO2 range

(gCO2km)

Passenger car 2016 average (568)

BEV 15 357

PHEV 30 714

1 Eco car 475 HEV 53 1261

2 City car subcompact 585 ECO Car 2 lt 43 lt 1023

3 Compact car C-segment 619 Eco Car 1 43 ndash 51 1023 ndash 1213

4 D-segment full size sedan 725 Compact car 51 ndash 63 1213 ndash 1499

5 mini-MPV and B-SUV 625 Mini-MPV B-SUV 63 ndash 84 1499 ndash 1998

6 SUV and MPV 774 SUV Full size MPV gt 84 gt 1998

Pickup based 2016 average (767)(singlespacedouble cabs amp PPV) BEV 2638 6275

PHEV 4475 10645

HEV 6313 15015

ICE1 lt 51 lt 1213

7 PPV 815 ICE2 51 ndash 63 1213 ndash 1499

8 Single cab pickup 740 ICE3 63 ndash 74 1499 ndash 1760

9 Extra cab pickup 740 ICE4 74 ndash 84 1760 ndash 1998

10 4 doors pickup 796 ICE5 gt 84 gt 1998

PLDV average 681

Exci

se ta

x st

ruct

urebull Thai excise tax rate use

different criteria between

passenger car (tougher)

and pickup truck (more

lenient)

bull Even within pickup truck

with same CO2

emissionkm excise tax

rates are different

1 lt 15 lt 2 compartments

17

FEPIT prediction of new passenger car mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Label shows average FE [Lge100km]

in that vehicle segment which

improved with FEPIT estimationProjection

Passenger car

2016 2030

Projection

568 366 Lge100km

(2016) (2030)

18

FEPIT prediction of new pickup truck mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Projection

Pickup based (SingleSpaceDouble Cabs amp PPV)

2016 2030

Projection

767 494 Lge100km

(2016) (2030)

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 9: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

9

Government activities to improve FE of new vehicles

bull Thailand vehicle excise tax structure

ASEAN German Technical Cooperation ndash Transport and Climate Change

4 5 5) Suggested Price (Excise Tax Rate)

Updated on

16 September 2017

10

Fuel Efficiency Policies in the Land Transport Sector in Thailand

bull A study of the Transport and Climate Change (TCC)

Phase I

1 To collect necessary data and conduct a policy inventory related to fuel efficiency policies and measures

2 To use this policy inventory to conduct a gap analysis of what is missing for increased energy efficiency for PCs and MCs

3 To identify key issues barriers opportunities and recommendations for advancing fuel efficiency policies in Thailand

Phase II

1 To create a template for FE data collection to update the data (up to year 2017) and the policiesmeasures related to fuel efficiency and to analyse the impact of existing FE policies and to provide the recommendations for FE improvement

2 To analyse COST-BENEFIT OF FE POLICIESMEASURES implementation and model the IMPACTS OF POSSIBLE SCENARIOS and create recommendationskey considerations on implementing proposed FE policiesmeasurements and improving the FE technology

3 To create common understanding and good cooperation among stakeholders including government private sector and customer groups regarding the improvement of fuel efficiency of passenger cars and motorcycles in Thailand

4 To push forward advance FE policiesmeasures to actual implementation

ASEAN German Technical Cooperation ndash Transport and Climate Change

Phase IPhase II (Draft)

httpswwwtransportandclimatechangeorg

11

Scenario definition of FE development 2016 2030

According on current situation nominal improvement rate GFEI Target

ASEAN German Technical Cooperation ndash Transport and Climate Change

bull Current NO FE improvement

According to

GFEI Global

Target

bull BAU FE improvement of 10 annual rate

bull GFEI Target - FE improvement of 31 annual rate Projection toward

44 Lge100km at 2030

(market average for

PC amp PU) then assume FE

improvement at constant rate

of 10 annually

12

3 Proposals of Fuel Economy Improvement measures

Aims of ldquoCost Benefit Analysisrdquo

To analyze cost benefit of proposed

FE policymeasure implementation

To model the impacts of possible scenario and

To create recommendationskey considerations

on implementing proposed FE policymeasures

and improving the FE technology

ASEAN German Technical Cooperation ndash Transport and Climate Change

Revise the Excise tax scheme

for new vehicles

Improve Eco-sticker

Revise Fuel tax

Annual registration tax

13

Required FE policy toward desired FE target

bull Focusing on 3 Proposals of Fuel Economy Improvement measures

ASEAN German Technical Cooperation ndash Transport and Climate Change

Assumption BAUAssumptions for

GFEI target scenario

Industry baseline for FC improvement rate 100 100

Impact of eco-sticker on FC improvement rate - 01

Linear slope of excise tax

[THB(gCO2km)]

Passenger car 3145 4029

Pickup truck 1044 1999

Linear slope of annual

registration tax [THB(gCO2km)]

Passenger car As a function of engine size 110

Pickup truck As a function of vehicle curb weight 132

Fuel tax increase () Static fuel price 20

Target 2016 2030

PC 568 366

PU 767 494

Average 681 438

14

Methodology of the COST BENEFIT ANALYSIS

bull Impacts projection of FE policy by using FEPIT (Fuel Economy Policy Implementation Tool)

OUTPUT Policy intensive level Excise tax Circulation tax Fuel tax toward the desired FE target

Projection of Market share

Projection of Fuel Consumption for Passenger car amp Pickup truck

bull Determine impacts on Owner (customer) lsquos viewpoint (comparing by Net Present Value in 20 years)

By variations of Capital cost Vehicle price at factory gate (with improvement of Fuel Economydagger)

Capital cost Excise tax change

Annual registration tax change

Fuel expense decrease with FE improvement change with fuel price

Maintenance cost depended on technology (cost for EV is higher for battery replacement)

bull Determine impacts on government lsquos viewpoint (eg fuel saving CO2 reduction government income taxes)

FEPIT Tool ndash Fuel Economy Implementation Tool ICCT (International Council on Clean Transportation)

daggerCost curve with FE improvement ndash mainly from ICCT

ASEAN German Technical Cooperation ndash Transport and Climate Change

15

Updated FE database for new Passenger Light Duty Vehicle (PLDV)

Vehicle typesNew sale (Top 10 ranked vehicles) Weighted-average FC (Lge100 km)

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

1 Eco car 187429 118519 87745 114095 156234 488 489 488 475 476

2 City car subcompact Sedan amp

Hatchback

271018 167522 117548 76447 86200 599 598 578 585 582

3 Compact car C-segment

Sedan Hatchback Coupe Roadster

89975 66586 40624 47820 53797 645 651 655 619 614

4 D-segment full size sedan 34363 19343 16407 12312 9118 722 733 711 725 725

5 mini-MPV and B-SUV 42046 41046 50690 39417 40293 744 695 662 625 625

6 SUV and MPV 10307 10617 14332 13790 22974 883 774 759 774 748

7 PPV 58942 48646 69063 60683 59576 952 917 843 815 815

8 Single cab pickup 75024 51325 50851 48127 44485 765 766 760 740 736

9 Extra cab pickup 278019 206130 168236 176758 186727 769 770 769 740 744

10 4 doors pickup 164650 114385 107986 108602 157299 855 856 858 796 791

Sub-total vehicle ( share of

total vehicle registration)

1211773

(9325)

844119

(9328)

723482

(9088)

698051

(8602)

816703

(8879)

DLT new registers 1299508 904969 796089 811518 919820

Annual weighted-average FC 698 701 708 681 675

FC change 04 09 -38 -09

Weight Average FE of Passenger Light Duty Vehicles (PLDV) sales during 2013-2017

Ref GIZ study based on data from Department of Land Transporthttpwwwfiafoundationorgmedia45112wp11-iea-report-update-2014pdfhttpswwwglobalfueleconomyorgmedia418761wp15-ldv-comparisonpdf

ASEAN German Technical Cooperation ndash Transport and Climate Change

54 59 5869 79 77

71 76 76

2013 2014 2015

16

Vehicles classification for FEPIT tool

ASEAN German Technical Cooperation ndash Transport and Climate Change

2016 Data

Vehicle types

Corrected data Prepared data for FEPIT input

Weighted-average FC

(Lge100 km)

Vehicle class FC range

(Lge100km)

CO2 range

(gCO2km)

Passenger car 2016 average (568)

BEV 15 357

PHEV 30 714

1 Eco car 475 HEV 53 1261

2 City car subcompact 585 ECO Car 2 lt 43 lt 1023

3 Compact car C-segment 619 Eco Car 1 43 ndash 51 1023 ndash 1213

4 D-segment full size sedan 725 Compact car 51 ndash 63 1213 ndash 1499

5 mini-MPV and B-SUV 625 Mini-MPV B-SUV 63 ndash 84 1499 ndash 1998

6 SUV and MPV 774 SUV Full size MPV gt 84 gt 1998

Pickup based 2016 average (767)(singlespacedouble cabs amp PPV) BEV 2638 6275

PHEV 4475 10645

HEV 6313 15015

ICE1 lt 51 lt 1213

7 PPV 815 ICE2 51 ndash 63 1213 ndash 1499

8 Single cab pickup 740 ICE3 63 ndash 74 1499 ndash 1760

9 Extra cab pickup 740 ICE4 74 ndash 84 1760 ndash 1998

10 4 doors pickup 796 ICE5 gt 84 gt 1998

PLDV average 681

Exci

se ta

x st

ruct

urebull Thai excise tax rate use

different criteria between

passenger car (tougher)

and pickup truck (more

lenient)

bull Even within pickup truck

with same CO2

emissionkm excise tax

rates are different

1 lt 15 lt 2 compartments

17

FEPIT prediction of new passenger car mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Label shows average FE [Lge100km]

in that vehicle segment which

improved with FEPIT estimationProjection

Passenger car

2016 2030

Projection

568 366 Lge100km

(2016) (2030)

18

FEPIT prediction of new pickup truck mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Projection

Pickup based (SingleSpaceDouble Cabs amp PPV)

2016 2030

Projection

767 494 Lge100km

(2016) (2030)

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 10: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

10

Fuel Efficiency Policies in the Land Transport Sector in Thailand

bull A study of the Transport and Climate Change (TCC)

Phase I

1 To collect necessary data and conduct a policy inventory related to fuel efficiency policies and measures

2 To use this policy inventory to conduct a gap analysis of what is missing for increased energy efficiency for PCs and MCs

3 To identify key issues barriers opportunities and recommendations for advancing fuel efficiency policies in Thailand

Phase II

1 To create a template for FE data collection to update the data (up to year 2017) and the policiesmeasures related to fuel efficiency and to analyse the impact of existing FE policies and to provide the recommendations for FE improvement

2 To analyse COST-BENEFIT OF FE POLICIESMEASURES implementation and model the IMPACTS OF POSSIBLE SCENARIOS and create recommendationskey considerations on implementing proposed FE policiesmeasurements and improving the FE technology

3 To create common understanding and good cooperation among stakeholders including government private sector and customer groups regarding the improvement of fuel efficiency of passenger cars and motorcycles in Thailand

4 To push forward advance FE policiesmeasures to actual implementation

ASEAN German Technical Cooperation ndash Transport and Climate Change

Phase IPhase II (Draft)

httpswwwtransportandclimatechangeorg

11

Scenario definition of FE development 2016 2030

According on current situation nominal improvement rate GFEI Target

ASEAN German Technical Cooperation ndash Transport and Climate Change

bull Current NO FE improvement

According to

GFEI Global

Target

bull BAU FE improvement of 10 annual rate

bull GFEI Target - FE improvement of 31 annual rate Projection toward

44 Lge100km at 2030

(market average for

PC amp PU) then assume FE

improvement at constant rate

of 10 annually

12

3 Proposals of Fuel Economy Improvement measures

Aims of ldquoCost Benefit Analysisrdquo

To analyze cost benefit of proposed

FE policymeasure implementation

To model the impacts of possible scenario and

To create recommendationskey considerations

on implementing proposed FE policymeasures

and improving the FE technology

ASEAN German Technical Cooperation ndash Transport and Climate Change

Revise the Excise tax scheme

for new vehicles

Improve Eco-sticker

Revise Fuel tax

Annual registration tax

13

Required FE policy toward desired FE target

bull Focusing on 3 Proposals of Fuel Economy Improvement measures

ASEAN German Technical Cooperation ndash Transport and Climate Change

Assumption BAUAssumptions for

GFEI target scenario

Industry baseline for FC improvement rate 100 100

Impact of eco-sticker on FC improvement rate - 01

Linear slope of excise tax

[THB(gCO2km)]

Passenger car 3145 4029

Pickup truck 1044 1999

Linear slope of annual

registration tax [THB(gCO2km)]

Passenger car As a function of engine size 110

Pickup truck As a function of vehicle curb weight 132

Fuel tax increase () Static fuel price 20

Target 2016 2030

PC 568 366

PU 767 494

Average 681 438

14

Methodology of the COST BENEFIT ANALYSIS

bull Impacts projection of FE policy by using FEPIT (Fuel Economy Policy Implementation Tool)

OUTPUT Policy intensive level Excise tax Circulation tax Fuel tax toward the desired FE target

Projection of Market share

Projection of Fuel Consumption for Passenger car amp Pickup truck

bull Determine impacts on Owner (customer) lsquos viewpoint (comparing by Net Present Value in 20 years)

By variations of Capital cost Vehicle price at factory gate (with improvement of Fuel Economydagger)

Capital cost Excise tax change

Annual registration tax change

Fuel expense decrease with FE improvement change with fuel price

Maintenance cost depended on technology (cost for EV is higher for battery replacement)

bull Determine impacts on government lsquos viewpoint (eg fuel saving CO2 reduction government income taxes)

FEPIT Tool ndash Fuel Economy Implementation Tool ICCT (International Council on Clean Transportation)

daggerCost curve with FE improvement ndash mainly from ICCT

ASEAN German Technical Cooperation ndash Transport and Climate Change

15

Updated FE database for new Passenger Light Duty Vehicle (PLDV)

Vehicle typesNew sale (Top 10 ranked vehicles) Weighted-average FC (Lge100 km)

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

1 Eco car 187429 118519 87745 114095 156234 488 489 488 475 476

2 City car subcompact Sedan amp

Hatchback

271018 167522 117548 76447 86200 599 598 578 585 582

3 Compact car C-segment

Sedan Hatchback Coupe Roadster

89975 66586 40624 47820 53797 645 651 655 619 614

4 D-segment full size sedan 34363 19343 16407 12312 9118 722 733 711 725 725

5 mini-MPV and B-SUV 42046 41046 50690 39417 40293 744 695 662 625 625

6 SUV and MPV 10307 10617 14332 13790 22974 883 774 759 774 748

7 PPV 58942 48646 69063 60683 59576 952 917 843 815 815

8 Single cab pickup 75024 51325 50851 48127 44485 765 766 760 740 736

9 Extra cab pickup 278019 206130 168236 176758 186727 769 770 769 740 744

10 4 doors pickup 164650 114385 107986 108602 157299 855 856 858 796 791

Sub-total vehicle ( share of

total vehicle registration)

1211773

(9325)

844119

(9328)

723482

(9088)

698051

(8602)

816703

(8879)

DLT new registers 1299508 904969 796089 811518 919820

Annual weighted-average FC 698 701 708 681 675

FC change 04 09 -38 -09

Weight Average FE of Passenger Light Duty Vehicles (PLDV) sales during 2013-2017

Ref GIZ study based on data from Department of Land Transporthttpwwwfiafoundationorgmedia45112wp11-iea-report-update-2014pdfhttpswwwglobalfueleconomyorgmedia418761wp15-ldv-comparisonpdf

ASEAN German Technical Cooperation ndash Transport and Climate Change

54 59 5869 79 77

71 76 76

2013 2014 2015

16

Vehicles classification for FEPIT tool

ASEAN German Technical Cooperation ndash Transport and Climate Change

2016 Data

Vehicle types

Corrected data Prepared data for FEPIT input

Weighted-average FC

(Lge100 km)

Vehicle class FC range

(Lge100km)

CO2 range

(gCO2km)

Passenger car 2016 average (568)

BEV 15 357

PHEV 30 714

1 Eco car 475 HEV 53 1261

2 City car subcompact 585 ECO Car 2 lt 43 lt 1023

3 Compact car C-segment 619 Eco Car 1 43 ndash 51 1023 ndash 1213

4 D-segment full size sedan 725 Compact car 51 ndash 63 1213 ndash 1499

5 mini-MPV and B-SUV 625 Mini-MPV B-SUV 63 ndash 84 1499 ndash 1998

6 SUV and MPV 774 SUV Full size MPV gt 84 gt 1998

Pickup based 2016 average (767)(singlespacedouble cabs amp PPV) BEV 2638 6275

PHEV 4475 10645

HEV 6313 15015

ICE1 lt 51 lt 1213

7 PPV 815 ICE2 51 ndash 63 1213 ndash 1499

8 Single cab pickup 740 ICE3 63 ndash 74 1499 ndash 1760

9 Extra cab pickup 740 ICE4 74 ndash 84 1760 ndash 1998

10 4 doors pickup 796 ICE5 gt 84 gt 1998

PLDV average 681

Exci

se ta

x st

ruct

urebull Thai excise tax rate use

different criteria between

passenger car (tougher)

and pickup truck (more

lenient)

bull Even within pickup truck

with same CO2

emissionkm excise tax

rates are different

1 lt 15 lt 2 compartments

17

FEPIT prediction of new passenger car mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Label shows average FE [Lge100km]

in that vehicle segment which

improved with FEPIT estimationProjection

Passenger car

2016 2030

Projection

568 366 Lge100km

(2016) (2030)

18

FEPIT prediction of new pickup truck mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Projection

Pickup based (SingleSpaceDouble Cabs amp PPV)

2016 2030

Projection

767 494 Lge100km

(2016) (2030)

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 11: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

11

Scenario definition of FE development 2016 2030

According on current situation nominal improvement rate GFEI Target

ASEAN German Technical Cooperation ndash Transport and Climate Change

bull Current NO FE improvement

According to

GFEI Global

Target

bull BAU FE improvement of 10 annual rate

bull GFEI Target - FE improvement of 31 annual rate Projection toward

44 Lge100km at 2030

(market average for

PC amp PU) then assume FE

improvement at constant rate

of 10 annually

12

3 Proposals of Fuel Economy Improvement measures

Aims of ldquoCost Benefit Analysisrdquo

To analyze cost benefit of proposed

FE policymeasure implementation

To model the impacts of possible scenario and

To create recommendationskey considerations

on implementing proposed FE policymeasures

and improving the FE technology

ASEAN German Technical Cooperation ndash Transport and Climate Change

Revise the Excise tax scheme

for new vehicles

Improve Eco-sticker

Revise Fuel tax

Annual registration tax

13

Required FE policy toward desired FE target

bull Focusing on 3 Proposals of Fuel Economy Improvement measures

ASEAN German Technical Cooperation ndash Transport and Climate Change

Assumption BAUAssumptions for

GFEI target scenario

Industry baseline for FC improvement rate 100 100

Impact of eco-sticker on FC improvement rate - 01

Linear slope of excise tax

[THB(gCO2km)]

Passenger car 3145 4029

Pickup truck 1044 1999

Linear slope of annual

registration tax [THB(gCO2km)]

Passenger car As a function of engine size 110

Pickup truck As a function of vehicle curb weight 132

Fuel tax increase () Static fuel price 20

Target 2016 2030

PC 568 366

PU 767 494

Average 681 438

14

Methodology of the COST BENEFIT ANALYSIS

bull Impacts projection of FE policy by using FEPIT (Fuel Economy Policy Implementation Tool)

OUTPUT Policy intensive level Excise tax Circulation tax Fuel tax toward the desired FE target

Projection of Market share

Projection of Fuel Consumption for Passenger car amp Pickup truck

bull Determine impacts on Owner (customer) lsquos viewpoint (comparing by Net Present Value in 20 years)

By variations of Capital cost Vehicle price at factory gate (with improvement of Fuel Economydagger)

Capital cost Excise tax change

Annual registration tax change

Fuel expense decrease with FE improvement change with fuel price

Maintenance cost depended on technology (cost for EV is higher for battery replacement)

bull Determine impacts on government lsquos viewpoint (eg fuel saving CO2 reduction government income taxes)

FEPIT Tool ndash Fuel Economy Implementation Tool ICCT (International Council on Clean Transportation)

daggerCost curve with FE improvement ndash mainly from ICCT

ASEAN German Technical Cooperation ndash Transport and Climate Change

15

Updated FE database for new Passenger Light Duty Vehicle (PLDV)

Vehicle typesNew sale (Top 10 ranked vehicles) Weighted-average FC (Lge100 km)

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

1 Eco car 187429 118519 87745 114095 156234 488 489 488 475 476

2 City car subcompact Sedan amp

Hatchback

271018 167522 117548 76447 86200 599 598 578 585 582

3 Compact car C-segment

Sedan Hatchback Coupe Roadster

89975 66586 40624 47820 53797 645 651 655 619 614

4 D-segment full size sedan 34363 19343 16407 12312 9118 722 733 711 725 725

5 mini-MPV and B-SUV 42046 41046 50690 39417 40293 744 695 662 625 625

6 SUV and MPV 10307 10617 14332 13790 22974 883 774 759 774 748

7 PPV 58942 48646 69063 60683 59576 952 917 843 815 815

8 Single cab pickup 75024 51325 50851 48127 44485 765 766 760 740 736

9 Extra cab pickup 278019 206130 168236 176758 186727 769 770 769 740 744

10 4 doors pickup 164650 114385 107986 108602 157299 855 856 858 796 791

Sub-total vehicle ( share of

total vehicle registration)

1211773

(9325)

844119

(9328)

723482

(9088)

698051

(8602)

816703

(8879)

DLT new registers 1299508 904969 796089 811518 919820

Annual weighted-average FC 698 701 708 681 675

FC change 04 09 -38 -09

Weight Average FE of Passenger Light Duty Vehicles (PLDV) sales during 2013-2017

Ref GIZ study based on data from Department of Land Transporthttpwwwfiafoundationorgmedia45112wp11-iea-report-update-2014pdfhttpswwwglobalfueleconomyorgmedia418761wp15-ldv-comparisonpdf

ASEAN German Technical Cooperation ndash Transport and Climate Change

54 59 5869 79 77

71 76 76

2013 2014 2015

16

Vehicles classification for FEPIT tool

ASEAN German Technical Cooperation ndash Transport and Climate Change

2016 Data

Vehicle types

Corrected data Prepared data for FEPIT input

Weighted-average FC

(Lge100 km)

Vehicle class FC range

(Lge100km)

CO2 range

(gCO2km)

Passenger car 2016 average (568)

BEV 15 357

PHEV 30 714

1 Eco car 475 HEV 53 1261

2 City car subcompact 585 ECO Car 2 lt 43 lt 1023

3 Compact car C-segment 619 Eco Car 1 43 ndash 51 1023 ndash 1213

4 D-segment full size sedan 725 Compact car 51 ndash 63 1213 ndash 1499

5 mini-MPV and B-SUV 625 Mini-MPV B-SUV 63 ndash 84 1499 ndash 1998

6 SUV and MPV 774 SUV Full size MPV gt 84 gt 1998

Pickup based 2016 average (767)(singlespacedouble cabs amp PPV) BEV 2638 6275

PHEV 4475 10645

HEV 6313 15015

ICE1 lt 51 lt 1213

7 PPV 815 ICE2 51 ndash 63 1213 ndash 1499

8 Single cab pickup 740 ICE3 63 ndash 74 1499 ndash 1760

9 Extra cab pickup 740 ICE4 74 ndash 84 1760 ndash 1998

10 4 doors pickup 796 ICE5 gt 84 gt 1998

PLDV average 681

Exci

se ta

x st

ruct

urebull Thai excise tax rate use

different criteria between

passenger car (tougher)

and pickup truck (more

lenient)

bull Even within pickup truck

with same CO2

emissionkm excise tax

rates are different

1 lt 15 lt 2 compartments

17

FEPIT prediction of new passenger car mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Label shows average FE [Lge100km]

in that vehicle segment which

improved with FEPIT estimationProjection

Passenger car

2016 2030

Projection

568 366 Lge100km

(2016) (2030)

18

FEPIT prediction of new pickup truck mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Projection

Pickup based (SingleSpaceDouble Cabs amp PPV)

2016 2030

Projection

767 494 Lge100km

(2016) (2030)

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 12: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

12

3 Proposals of Fuel Economy Improvement measures

Aims of ldquoCost Benefit Analysisrdquo

To analyze cost benefit of proposed

FE policymeasure implementation

To model the impacts of possible scenario and

To create recommendationskey considerations

on implementing proposed FE policymeasures

and improving the FE technology

ASEAN German Technical Cooperation ndash Transport and Climate Change

Revise the Excise tax scheme

for new vehicles

Improve Eco-sticker

Revise Fuel tax

Annual registration tax

13

Required FE policy toward desired FE target

bull Focusing on 3 Proposals of Fuel Economy Improvement measures

ASEAN German Technical Cooperation ndash Transport and Climate Change

Assumption BAUAssumptions for

GFEI target scenario

Industry baseline for FC improvement rate 100 100

Impact of eco-sticker on FC improvement rate - 01

Linear slope of excise tax

[THB(gCO2km)]

Passenger car 3145 4029

Pickup truck 1044 1999

Linear slope of annual

registration tax [THB(gCO2km)]

Passenger car As a function of engine size 110

Pickup truck As a function of vehicle curb weight 132

Fuel tax increase () Static fuel price 20

Target 2016 2030

PC 568 366

PU 767 494

Average 681 438

14

Methodology of the COST BENEFIT ANALYSIS

bull Impacts projection of FE policy by using FEPIT (Fuel Economy Policy Implementation Tool)

OUTPUT Policy intensive level Excise tax Circulation tax Fuel tax toward the desired FE target

Projection of Market share

Projection of Fuel Consumption for Passenger car amp Pickup truck

bull Determine impacts on Owner (customer) lsquos viewpoint (comparing by Net Present Value in 20 years)

By variations of Capital cost Vehicle price at factory gate (with improvement of Fuel Economydagger)

Capital cost Excise tax change

Annual registration tax change

Fuel expense decrease with FE improvement change with fuel price

Maintenance cost depended on technology (cost for EV is higher for battery replacement)

bull Determine impacts on government lsquos viewpoint (eg fuel saving CO2 reduction government income taxes)

FEPIT Tool ndash Fuel Economy Implementation Tool ICCT (International Council on Clean Transportation)

daggerCost curve with FE improvement ndash mainly from ICCT

ASEAN German Technical Cooperation ndash Transport and Climate Change

15

Updated FE database for new Passenger Light Duty Vehicle (PLDV)

Vehicle typesNew sale (Top 10 ranked vehicles) Weighted-average FC (Lge100 km)

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

1 Eco car 187429 118519 87745 114095 156234 488 489 488 475 476

2 City car subcompact Sedan amp

Hatchback

271018 167522 117548 76447 86200 599 598 578 585 582

3 Compact car C-segment

Sedan Hatchback Coupe Roadster

89975 66586 40624 47820 53797 645 651 655 619 614

4 D-segment full size sedan 34363 19343 16407 12312 9118 722 733 711 725 725

5 mini-MPV and B-SUV 42046 41046 50690 39417 40293 744 695 662 625 625

6 SUV and MPV 10307 10617 14332 13790 22974 883 774 759 774 748

7 PPV 58942 48646 69063 60683 59576 952 917 843 815 815

8 Single cab pickup 75024 51325 50851 48127 44485 765 766 760 740 736

9 Extra cab pickup 278019 206130 168236 176758 186727 769 770 769 740 744

10 4 doors pickup 164650 114385 107986 108602 157299 855 856 858 796 791

Sub-total vehicle ( share of

total vehicle registration)

1211773

(9325)

844119

(9328)

723482

(9088)

698051

(8602)

816703

(8879)

DLT new registers 1299508 904969 796089 811518 919820

Annual weighted-average FC 698 701 708 681 675

FC change 04 09 -38 -09

Weight Average FE of Passenger Light Duty Vehicles (PLDV) sales during 2013-2017

Ref GIZ study based on data from Department of Land Transporthttpwwwfiafoundationorgmedia45112wp11-iea-report-update-2014pdfhttpswwwglobalfueleconomyorgmedia418761wp15-ldv-comparisonpdf

ASEAN German Technical Cooperation ndash Transport and Climate Change

54 59 5869 79 77

71 76 76

2013 2014 2015

16

Vehicles classification for FEPIT tool

ASEAN German Technical Cooperation ndash Transport and Climate Change

2016 Data

Vehicle types

Corrected data Prepared data for FEPIT input

Weighted-average FC

(Lge100 km)

Vehicle class FC range

(Lge100km)

CO2 range

(gCO2km)

Passenger car 2016 average (568)

BEV 15 357

PHEV 30 714

1 Eco car 475 HEV 53 1261

2 City car subcompact 585 ECO Car 2 lt 43 lt 1023

3 Compact car C-segment 619 Eco Car 1 43 ndash 51 1023 ndash 1213

4 D-segment full size sedan 725 Compact car 51 ndash 63 1213 ndash 1499

5 mini-MPV and B-SUV 625 Mini-MPV B-SUV 63 ndash 84 1499 ndash 1998

6 SUV and MPV 774 SUV Full size MPV gt 84 gt 1998

Pickup based 2016 average (767)(singlespacedouble cabs amp PPV) BEV 2638 6275

PHEV 4475 10645

HEV 6313 15015

ICE1 lt 51 lt 1213

7 PPV 815 ICE2 51 ndash 63 1213 ndash 1499

8 Single cab pickup 740 ICE3 63 ndash 74 1499 ndash 1760

9 Extra cab pickup 740 ICE4 74 ndash 84 1760 ndash 1998

10 4 doors pickup 796 ICE5 gt 84 gt 1998

PLDV average 681

Exci

se ta

x st

ruct

urebull Thai excise tax rate use

different criteria between

passenger car (tougher)

and pickup truck (more

lenient)

bull Even within pickup truck

with same CO2

emissionkm excise tax

rates are different

1 lt 15 lt 2 compartments

17

FEPIT prediction of new passenger car mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Label shows average FE [Lge100km]

in that vehicle segment which

improved with FEPIT estimationProjection

Passenger car

2016 2030

Projection

568 366 Lge100km

(2016) (2030)

18

FEPIT prediction of new pickup truck mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Projection

Pickup based (SingleSpaceDouble Cabs amp PPV)

2016 2030

Projection

767 494 Lge100km

(2016) (2030)

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 13: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

13

Required FE policy toward desired FE target

bull Focusing on 3 Proposals of Fuel Economy Improvement measures

ASEAN German Technical Cooperation ndash Transport and Climate Change

Assumption BAUAssumptions for

GFEI target scenario

Industry baseline for FC improvement rate 100 100

Impact of eco-sticker on FC improvement rate - 01

Linear slope of excise tax

[THB(gCO2km)]

Passenger car 3145 4029

Pickup truck 1044 1999

Linear slope of annual

registration tax [THB(gCO2km)]

Passenger car As a function of engine size 110

Pickup truck As a function of vehicle curb weight 132

Fuel tax increase () Static fuel price 20

Target 2016 2030

PC 568 366

PU 767 494

Average 681 438

14

Methodology of the COST BENEFIT ANALYSIS

bull Impacts projection of FE policy by using FEPIT (Fuel Economy Policy Implementation Tool)

OUTPUT Policy intensive level Excise tax Circulation tax Fuel tax toward the desired FE target

Projection of Market share

Projection of Fuel Consumption for Passenger car amp Pickup truck

bull Determine impacts on Owner (customer) lsquos viewpoint (comparing by Net Present Value in 20 years)

By variations of Capital cost Vehicle price at factory gate (with improvement of Fuel Economydagger)

Capital cost Excise tax change

Annual registration tax change

Fuel expense decrease with FE improvement change with fuel price

Maintenance cost depended on technology (cost for EV is higher for battery replacement)

bull Determine impacts on government lsquos viewpoint (eg fuel saving CO2 reduction government income taxes)

FEPIT Tool ndash Fuel Economy Implementation Tool ICCT (International Council on Clean Transportation)

daggerCost curve with FE improvement ndash mainly from ICCT

ASEAN German Technical Cooperation ndash Transport and Climate Change

15

Updated FE database for new Passenger Light Duty Vehicle (PLDV)

Vehicle typesNew sale (Top 10 ranked vehicles) Weighted-average FC (Lge100 km)

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

1 Eco car 187429 118519 87745 114095 156234 488 489 488 475 476

2 City car subcompact Sedan amp

Hatchback

271018 167522 117548 76447 86200 599 598 578 585 582

3 Compact car C-segment

Sedan Hatchback Coupe Roadster

89975 66586 40624 47820 53797 645 651 655 619 614

4 D-segment full size sedan 34363 19343 16407 12312 9118 722 733 711 725 725

5 mini-MPV and B-SUV 42046 41046 50690 39417 40293 744 695 662 625 625

6 SUV and MPV 10307 10617 14332 13790 22974 883 774 759 774 748

7 PPV 58942 48646 69063 60683 59576 952 917 843 815 815

8 Single cab pickup 75024 51325 50851 48127 44485 765 766 760 740 736

9 Extra cab pickup 278019 206130 168236 176758 186727 769 770 769 740 744

10 4 doors pickup 164650 114385 107986 108602 157299 855 856 858 796 791

Sub-total vehicle ( share of

total vehicle registration)

1211773

(9325)

844119

(9328)

723482

(9088)

698051

(8602)

816703

(8879)

DLT new registers 1299508 904969 796089 811518 919820

Annual weighted-average FC 698 701 708 681 675

FC change 04 09 -38 -09

Weight Average FE of Passenger Light Duty Vehicles (PLDV) sales during 2013-2017

Ref GIZ study based on data from Department of Land Transporthttpwwwfiafoundationorgmedia45112wp11-iea-report-update-2014pdfhttpswwwglobalfueleconomyorgmedia418761wp15-ldv-comparisonpdf

ASEAN German Technical Cooperation ndash Transport and Climate Change

54 59 5869 79 77

71 76 76

2013 2014 2015

16

Vehicles classification for FEPIT tool

ASEAN German Technical Cooperation ndash Transport and Climate Change

2016 Data

Vehicle types

Corrected data Prepared data for FEPIT input

Weighted-average FC

(Lge100 km)

Vehicle class FC range

(Lge100km)

CO2 range

(gCO2km)

Passenger car 2016 average (568)

BEV 15 357

PHEV 30 714

1 Eco car 475 HEV 53 1261

2 City car subcompact 585 ECO Car 2 lt 43 lt 1023

3 Compact car C-segment 619 Eco Car 1 43 ndash 51 1023 ndash 1213

4 D-segment full size sedan 725 Compact car 51 ndash 63 1213 ndash 1499

5 mini-MPV and B-SUV 625 Mini-MPV B-SUV 63 ndash 84 1499 ndash 1998

6 SUV and MPV 774 SUV Full size MPV gt 84 gt 1998

Pickup based 2016 average (767)(singlespacedouble cabs amp PPV) BEV 2638 6275

PHEV 4475 10645

HEV 6313 15015

ICE1 lt 51 lt 1213

7 PPV 815 ICE2 51 ndash 63 1213 ndash 1499

8 Single cab pickup 740 ICE3 63 ndash 74 1499 ndash 1760

9 Extra cab pickup 740 ICE4 74 ndash 84 1760 ndash 1998

10 4 doors pickup 796 ICE5 gt 84 gt 1998

PLDV average 681

Exci

se ta

x st

ruct

urebull Thai excise tax rate use

different criteria between

passenger car (tougher)

and pickup truck (more

lenient)

bull Even within pickup truck

with same CO2

emissionkm excise tax

rates are different

1 lt 15 lt 2 compartments

17

FEPIT prediction of new passenger car mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Label shows average FE [Lge100km]

in that vehicle segment which

improved with FEPIT estimationProjection

Passenger car

2016 2030

Projection

568 366 Lge100km

(2016) (2030)

18

FEPIT prediction of new pickup truck mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Projection

Pickup based (SingleSpaceDouble Cabs amp PPV)

2016 2030

Projection

767 494 Lge100km

(2016) (2030)

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 14: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

14

Methodology of the COST BENEFIT ANALYSIS

bull Impacts projection of FE policy by using FEPIT (Fuel Economy Policy Implementation Tool)

OUTPUT Policy intensive level Excise tax Circulation tax Fuel tax toward the desired FE target

Projection of Market share

Projection of Fuel Consumption for Passenger car amp Pickup truck

bull Determine impacts on Owner (customer) lsquos viewpoint (comparing by Net Present Value in 20 years)

By variations of Capital cost Vehicle price at factory gate (with improvement of Fuel Economydagger)

Capital cost Excise tax change

Annual registration tax change

Fuel expense decrease with FE improvement change with fuel price

Maintenance cost depended on technology (cost for EV is higher for battery replacement)

bull Determine impacts on government lsquos viewpoint (eg fuel saving CO2 reduction government income taxes)

FEPIT Tool ndash Fuel Economy Implementation Tool ICCT (International Council on Clean Transportation)

daggerCost curve with FE improvement ndash mainly from ICCT

ASEAN German Technical Cooperation ndash Transport and Climate Change

15

Updated FE database for new Passenger Light Duty Vehicle (PLDV)

Vehicle typesNew sale (Top 10 ranked vehicles) Weighted-average FC (Lge100 km)

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

1 Eco car 187429 118519 87745 114095 156234 488 489 488 475 476

2 City car subcompact Sedan amp

Hatchback

271018 167522 117548 76447 86200 599 598 578 585 582

3 Compact car C-segment

Sedan Hatchback Coupe Roadster

89975 66586 40624 47820 53797 645 651 655 619 614

4 D-segment full size sedan 34363 19343 16407 12312 9118 722 733 711 725 725

5 mini-MPV and B-SUV 42046 41046 50690 39417 40293 744 695 662 625 625

6 SUV and MPV 10307 10617 14332 13790 22974 883 774 759 774 748

7 PPV 58942 48646 69063 60683 59576 952 917 843 815 815

8 Single cab pickup 75024 51325 50851 48127 44485 765 766 760 740 736

9 Extra cab pickup 278019 206130 168236 176758 186727 769 770 769 740 744

10 4 doors pickup 164650 114385 107986 108602 157299 855 856 858 796 791

Sub-total vehicle ( share of

total vehicle registration)

1211773

(9325)

844119

(9328)

723482

(9088)

698051

(8602)

816703

(8879)

DLT new registers 1299508 904969 796089 811518 919820

Annual weighted-average FC 698 701 708 681 675

FC change 04 09 -38 -09

Weight Average FE of Passenger Light Duty Vehicles (PLDV) sales during 2013-2017

Ref GIZ study based on data from Department of Land Transporthttpwwwfiafoundationorgmedia45112wp11-iea-report-update-2014pdfhttpswwwglobalfueleconomyorgmedia418761wp15-ldv-comparisonpdf

ASEAN German Technical Cooperation ndash Transport and Climate Change

54 59 5869 79 77

71 76 76

2013 2014 2015

16

Vehicles classification for FEPIT tool

ASEAN German Technical Cooperation ndash Transport and Climate Change

2016 Data

Vehicle types

Corrected data Prepared data for FEPIT input

Weighted-average FC

(Lge100 km)

Vehicle class FC range

(Lge100km)

CO2 range

(gCO2km)

Passenger car 2016 average (568)

BEV 15 357

PHEV 30 714

1 Eco car 475 HEV 53 1261

2 City car subcompact 585 ECO Car 2 lt 43 lt 1023

3 Compact car C-segment 619 Eco Car 1 43 ndash 51 1023 ndash 1213

4 D-segment full size sedan 725 Compact car 51 ndash 63 1213 ndash 1499

5 mini-MPV and B-SUV 625 Mini-MPV B-SUV 63 ndash 84 1499 ndash 1998

6 SUV and MPV 774 SUV Full size MPV gt 84 gt 1998

Pickup based 2016 average (767)(singlespacedouble cabs amp PPV) BEV 2638 6275

PHEV 4475 10645

HEV 6313 15015

ICE1 lt 51 lt 1213

7 PPV 815 ICE2 51 ndash 63 1213 ndash 1499

8 Single cab pickup 740 ICE3 63 ndash 74 1499 ndash 1760

9 Extra cab pickup 740 ICE4 74 ndash 84 1760 ndash 1998

10 4 doors pickup 796 ICE5 gt 84 gt 1998

PLDV average 681

Exci

se ta

x st

ruct

urebull Thai excise tax rate use

different criteria between

passenger car (tougher)

and pickup truck (more

lenient)

bull Even within pickup truck

with same CO2

emissionkm excise tax

rates are different

1 lt 15 lt 2 compartments

17

FEPIT prediction of new passenger car mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Label shows average FE [Lge100km]

in that vehicle segment which

improved with FEPIT estimationProjection

Passenger car

2016 2030

Projection

568 366 Lge100km

(2016) (2030)

18

FEPIT prediction of new pickup truck mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Projection

Pickup based (SingleSpaceDouble Cabs amp PPV)

2016 2030

Projection

767 494 Lge100km

(2016) (2030)

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 15: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

15

Updated FE database for new Passenger Light Duty Vehicle (PLDV)

Vehicle typesNew sale (Top 10 ranked vehicles) Weighted-average FC (Lge100 km)

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

1 Eco car 187429 118519 87745 114095 156234 488 489 488 475 476

2 City car subcompact Sedan amp

Hatchback

271018 167522 117548 76447 86200 599 598 578 585 582

3 Compact car C-segment

Sedan Hatchback Coupe Roadster

89975 66586 40624 47820 53797 645 651 655 619 614

4 D-segment full size sedan 34363 19343 16407 12312 9118 722 733 711 725 725

5 mini-MPV and B-SUV 42046 41046 50690 39417 40293 744 695 662 625 625

6 SUV and MPV 10307 10617 14332 13790 22974 883 774 759 774 748

7 PPV 58942 48646 69063 60683 59576 952 917 843 815 815

8 Single cab pickup 75024 51325 50851 48127 44485 765 766 760 740 736

9 Extra cab pickup 278019 206130 168236 176758 186727 769 770 769 740 744

10 4 doors pickup 164650 114385 107986 108602 157299 855 856 858 796 791

Sub-total vehicle ( share of

total vehicle registration)

1211773

(9325)

844119

(9328)

723482

(9088)

698051

(8602)

816703

(8879)

DLT new registers 1299508 904969 796089 811518 919820

Annual weighted-average FC 698 701 708 681 675

FC change 04 09 -38 -09

Weight Average FE of Passenger Light Duty Vehicles (PLDV) sales during 2013-2017

Ref GIZ study based on data from Department of Land Transporthttpwwwfiafoundationorgmedia45112wp11-iea-report-update-2014pdfhttpswwwglobalfueleconomyorgmedia418761wp15-ldv-comparisonpdf

ASEAN German Technical Cooperation ndash Transport and Climate Change

54 59 5869 79 77

71 76 76

2013 2014 2015

16

Vehicles classification for FEPIT tool

ASEAN German Technical Cooperation ndash Transport and Climate Change

2016 Data

Vehicle types

Corrected data Prepared data for FEPIT input

Weighted-average FC

(Lge100 km)

Vehicle class FC range

(Lge100km)

CO2 range

(gCO2km)

Passenger car 2016 average (568)

BEV 15 357

PHEV 30 714

1 Eco car 475 HEV 53 1261

2 City car subcompact 585 ECO Car 2 lt 43 lt 1023

3 Compact car C-segment 619 Eco Car 1 43 ndash 51 1023 ndash 1213

4 D-segment full size sedan 725 Compact car 51 ndash 63 1213 ndash 1499

5 mini-MPV and B-SUV 625 Mini-MPV B-SUV 63 ndash 84 1499 ndash 1998

6 SUV and MPV 774 SUV Full size MPV gt 84 gt 1998

Pickup based 2016 average (767)(singlespacedouble cabs amp PPV) BEV 2638 6275

PHEV 4475 10645

HEV 6313 15015

ICE1 lt 51 lt 1213

7 PPV 815 ICE2 51 ndash 63 1213 ndash 1499

8 Single cab pickup 740 ICE3 63 ndash 74 1499 ndash 1760

9 Extra cab pickup 740 ICE4 74 ndash 84 1760 ndash 1998

10 4 doors pickup 796 ICE5 gt 84 gt 1998

PLDV average 681

Exci

se ta

x st

ruct

urebull Thai excise tax rate use

different criteria between

passenger car (tougher)

and pickup truck (more

lenient)

bull Even within pickup truck

with same CO2

emissionkm excise tax

rates are different

1 lt 15 lt 2 compartments

17

FEPIT prediction of new passenger car mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Label shows average FE [Lge100km]

in that vehicle segment which

improved with FEPIT estimationProjection

Passenger car

2016 2030

Projection

568 366 Lge100km

(2016) (2030)

18

FEPIT prediction of new pickup truck mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Projection

Pickup based (SingleSpaceDouble Cabs amp PPV)

2016 2030

Projection

767 494 Lge100km

(2016) (2030)

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 16: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

16

Vehicles classification for FEPIT tool

ASEAN German Technical Cooperation ndash Transport and Climate Change

2016 Data

Vehicle types

Corrected data Prepared data for FEPIT input

Weighted-average FC

(Lge100 km)

Vehicle class FC range

(Lge100km)

CO2 range

(gCO2km)

Passenger car 2016 average (568)

BEV 15 357

PHEV 30 714

1 Eco car 475 HEV 53 1261

2 City car subcompact 585 ECO Car 2 lt 43 lt 1023

3 Compact car C-segment 619 Eco Car 1 43 ndash 51 1023 ndash 1213

4 D-segment full size sedan 725 Compact car 51 ndash 63 1213 ndash 1499

5 mini-MPV and B-SUV 625 Mini-MPV B-SUV 63 ndash 84 1499 ndash 1998

6 SUV and MPV 774 SUV Full size MPV gt 84 gt 1998

Pickup based 2016 average (767)(singlespacedouble cabs amp PPV) BEV 2638 6275

PHEV 4475 10645

HEV 6313 15015

ICE1 lt 51 lt 1213

7 PPV 815 ICE2 51 ndash 63 1213 ndash 1499

8 Single cab pickup 740 ICE3 63 ndash 74 1499 ndash 1760

9 Extra cab pickup 740 ICE4 74 ndash 84 1760 ndash 1998

10 4 doors pickup 796 ICE5 gt 84 gt 1998

PLDV average 681

Exci

se ta

x st

ruct

urebull Thai excise tax rate use

different criteria between

passenger car (tougher)

and pickup truck (more

lenient)

bull Even within pickup truck

with same CO2

emissionkm excise tax

rates are different

1 lt 15 lt 2 compartments

17

FEPIT prediction of new passenger car mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Label shows average FE [Lge100km]

in that vehicle segment which

improved with FEPIT estimationProjection

Passenger car

2016 2030

Projection

568 366 Lge100km

(2016) (2030)

18

FEPIT prediction of new pickup truck mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Projection

Pickup based (SingleSpaceDouble Cabs amp PPV)

2016 2030

Projection

767 494 Lge100km

(2016) (2030)

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 17: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

17

FEPIT prediction of new passenger car mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Label shows average FE [Lge100km]

in that vehicle segment which

improved with FEPIT estimationProjection

Passenger car

2016 2030

Projection

568 366 Lge100km

(2016) (2030)

18

FEPIT prediction of new pickup truck mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Projection

Pickup based (SingleSpaceDouble Cabs amp PPV)

2016 2030

Projection

767 494 Lge100km

(2016) (2030)

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 18: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

18

FEPIT prediction of new pickup truck mix and segment ave FE

ASEAN German Technical Cooperation ndash Transport and Climate Change

Projection

Pickup based (SingleSpaceDouble Cabs amp PPV)

2016 2030

Projection

767 494 Lge100km

(2016) (2030)

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 19: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

19

Results of Cost Benefit Analysis

Total Cost of Ownership (Customerrsquos viewpoint)

ASEAN German Technical Cooperation ndash Transport and Climate Change

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 20: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

20

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Market

averageNet Present Value

20 Years 465 discount rate

20000 kmyear

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 21: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

21

TCO Results Customerrsquos viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

Market

average

Note Vehicle price is averaged from market survey excepted the xEV which is followed PTT EV study

Battery cost is also followed PTT EV study (around 22 of vehicle gate price) and schedule for replacing every 8 years

Maintenance cost of ICE is the engine overhauling expense (50000 THB estimated) for every 10 years

Energy expense = fuel expense (refer to considered fuel price) + electric charging for BEVPHEV (assume 4 THBkWh)

Required some subsidize

Net Present Value

20 Years 465 discount rate

24000 kmyear

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 22: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

22

Results of Cost Benefit Analysis

Impacts in Governmentrsquos Viewpoint

ASEAN German Technical Cooperation ndash Transport and Climate Change

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 23: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

23

Results Government viewpoint 2030

ASEAN German Technical Cooperation ndash Transport and Climate Change

Required subsidize

for pickup truck

044

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 24: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

24

Impact on CO2 emission reduction

ASEAN German Technical Cooperation ndash Transport and Climate Change

~38

31 October 2018 OTP ndash NDC Action Plan httpwwwotpgothindexphppostviewid=2826

OTP ndash NDC action planTotal CO2 reduction target is

310Million TonCO2 in 2030

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 25: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

25

Results discussion from Thailandrsquo study

bull Total Cost of Ownership for FE improvement of new PLDV

Car (Gasoline) Lower TCO in lsquoGFEI Targetrsquo scenario without government support

Pickup (Diesel) Similar with government subsidy in lsquoGFEI Targetrsquo scenario

bull Cost benefit in Governmentrsquos viewpoint

Government income will increase since increasing of annual registration tax and fuel excise tax

Pickup truck subsidize is required to encourage FE improvement for pickup truck market but less

evident compared to income increase

FE improvement of new PLDV can help reduce about 38 from total CO2 mitigation target of the

Nationally Determined Contribution (NDC) plan for Transport sector

ASEAN German Technical Cooperation ndash Transport and Climate Change

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 26: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

26ASEAN German Technical Cooperation ndash Transport and Climate Change

Energy and Environmental Impacts

of the EXCISE TAX Reform for New Vehicle Registration and

Transportation Fuels in The PHILIPPINES

Alex Koumlrner

Alex_koernergmxde

Consultant for

Clean Air Asia

Alvin Mejia amp

Kathleen Dematera

Clean Air Asia

Bert Fabian

UN Environment

Clean Air Asia 2017 httpcleanairasiaorg

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 27: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

27

Methodology

ASEAN German Technical Cooperation ndash Transport and Climate Change

2013 2020

Clean Air Asia 2017 httpcleanairasiaorg

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 28: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

28

Results for new average LDV fuel consumption

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 29: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

29

Results ndash Fuel use and emissions in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 30: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

30

Results ndash Fuel cost in the Tax Reform Scenario

ASEAN German Technical Cooperation ndash Transport and Climate ChangeClean Air Asia 2017 httpcleanairasiaorg

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 31: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

31

Results discussion from the Philippinesrsquo study

bull According to the analysis increasing the excise tax of vehicles based on vehicle price can have an

effect on vehicle fuel economy

bull In reality since the vehicle excise tax is based on price ndash and not directly on fuel economy ndash the

effect of the tax reform on fuel economy will be much less than the estimated 3 annual

improvement

bull This is due to the fact that the consumer does not make the link between excise tax and fuel economy

bull Due to the excise tax increase he will eventually buy a slightly cheaper and therefore smaller and

somewhat more efficient vehicle but the excise tax reform based on vehicle price provides no

inherent incentives to choose more efficient cars

ASEAN German Technical Cooperation ndash Transport and Climate Change

Clean Air Asia 2017 httpcleanairasiaorg

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 32: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

32

Updated recent governmentrsquos efforts Thailand

bull October 31 2018 gtgt The meeting of Coordinating

Committee on Policy and Actions for Climate Change

Mitigation and Sustainable Transport proposed

some FE Policies to be approved soon by the

Ministry of Transport (tentatively November 19)

FE Policy

ExistingNear term measures

bull Restructure excise tax for new PLDV (Former Engine size

Current CO2 based)

bull Restructure excise tax for new Motorcycle (Engine size

CO2 based)

bull Revise annual registration tax to CO2-based scheme

Proposed measures

bull Strengthening CO2-based excise tax scheme

bull Use fuel price mechanism for efficient vehicle used

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpwwwotpgothindexphppostviewid=2826

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 33: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

33

Updated recent governmentrsquos efforts Philippines

bull January 1 2018 gtgt New excise taxes on cars and fuels

ASEAN German Technical Cooperation ndash Transport and Climate Change

httpswwwautoindustriyacomauto-industry-newsnew-excise-taxes-on-cars-fuel-effective-january-1-2018html

Efficient vehicle

subsidize

Revising

fuel excise tax

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU

Page 34: Cost Benefit Analysis on Fuel Economy: Thailand & …...Passenger car 3,145* 4,029 Pickup truck 1,044* 1,999 Linear slope of annual registration tax [THB/(gCO 2 /km)] Passenger car

34ASEAN German Technical Cooperation ndash Transport and Climate Change

THANK YOU