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Accelerating Vehicle Replacement and Environmental Protection: the Case of Passenger Cars in Greece.



A model of optimal car replacement is developed and used to examine the impact of alternative policy measures on the optimal car replacement time and on total emissions of pollutants, when environment policy takes the form of: (i) reduced taxes on purchaso of "clean" cars, (ii) administrative measures to reduce car usage (traffic restrictions), and (iii) fuel taxes aimed at reducing car usage.

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