Sedehi, Habib with Alessandro Gambaro and Federico Lanza, "A Dynamic Model to Evaluate Mixed Automobile Fuel Market in Italian Environment", 1990

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The automobile fuel market in Italy is appreciably different from that in other European countries and even more unlike the American context.As a matter of fact, the alternative and available automobile fuels in this country are the following: -gasoline (petrol),-gas oil (diesel oil),-liquefied gas (LPG), plus a very small amount of natural gas, each with its own price. In addition, price differences are considerably greater than in other countries.In view of the fact that gasoline is the most expensive fuel and gas oil the least expensive, the Italian Government has adopted a peculiar tax called “Superbollo” meant to penalize car owners with diesel powered engines and those with both gasoline and LPG powered engines, but to a different degree.The alternatives access by drivers (car-users) to different fuel resources has influenced and countries to influence the automobile industry’s approach to the Italian market.On the other hand, the different fuel prices, plus the varying annual amount of the ‘Superbollo” tax, influences the motorist’s decision in buying and using differently powered cars.The decision is obviously affected by the consumption rate for each type of fuel and the driver’s expected mileage per year.This paper aims to underline and analyze the hypothesis on the mix of the three main fuels used in Italy, trying to give results principally on the basis of: -price-changing of each fuel, -tax-value of “Supperbollo”, -different driver-mileage taking into account the pollution-cost of each of the three fuel solutions. The system, which is the subject of the study, will be analyzed using System Dynamics methodology, with a dynamic model.

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