The retrofit puzzle: optimal fleet owner behavior in the context of diesel retrofit incentive programs
Potential government regulations and financial incentives for encouraging pollution reduction retrofits on diesel vehicles are discussed. An integer program is developed to model profit-maximizing fleet owner behavior in the context of potential government programs. The model is intended as a tool both for fleet owners and for government administrators. It allows for mandated retrofits, mandated percent reductions of specified emissions, fixed grants for performing retrofits, and grants per gram of pollution prevented.