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The merits of accelerated depreciation for promoting investment in clean transport technologies: A simulation study in the Australian rail freight industry
Authors:Nattawoot Koowattanatianchai  Jian Wang  Michael B. Charles
Affiliation:1. Kasetsart University, Bangkok, Thailand;2. Southern Cross University, Canberra, ACT, Australia;3. Southern Cross University, Tweeds Head, NSW, Australia;1. Mechanical and Aerospace Engineering, University of California, San Diego, CA 92093, USA;2. Scientific Research & Lead User Programs, National Instruments, Austin, TX 78759, USA;1. Department of Supply Chain Management & Marketing Sciences, Rutgers Business School – Newark and New Brunswick, Rutgers, The State University of New Jersey, USA;2. Olin Business School, Washington University in St. Louis, USA;1. Départment de Mathématiques et Génie Industriel, École Polytechnique de Montréal, Montréal, QC H3T 1J4, Canada;2. Department of Industrial Engineering, University of Kurdistan, 66177-15177 Sanandaj, Iran;1. Key Laboratory of Low-grade Energy Utilization Technologies and Systems, Ministry of Education, College of Power Engineering, Chongqing University, Chongqing 400030, China;2. LEREPS, Toulouse University, Université de Toulouse, 15 rue des Lois, Toulouse 31000, France
Abstract:This article ascertains the viability of promoting accelerated depreciation for newly acquired locomotives and other rolling stock as a means of encouraging technological investment in more efficient and environmentally friendly assets. The study uses a tax-adjusted asset replacement model to evaluate the merits of accelerated depreciation, and then compares the outcomes with alternative incentive schemes. It also examines what would occur if various schemes were used simultaneously.
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