| While the phase-out of lead in gasoline is technically and economically feasible, any phase-out policy should address in detail two key factors: the policy measures applied, and the appropriate time schedule. Additionally, regulatory changes (e.g., stricter standards for the emissions of benzene, aromatics, and sulfur) should also be taken into account. The analysis of existing phase-out strategies and their implementation shows that the SILAQ countries have considered and adopted quite different approaches to the lead phase-out process.
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| Instruments in Use | Most of the countries involved have introduced a requirement for the fitting of catalytic converters. Hungary has even offered financial support for the equipping of cars with catalytic converters, while the tax charged on vehicles is 50 percent lower for cars with catalytic converters. Bulgaria has introduced an environmental tax (5 percent of the gasoline price) and Poland has applied a local tax that varies according to engine capacity. Tax incentives have been applied in all the SILAQ countries, but with the exception of Slovakia and Slovenia, the differences in consumer prices of gasoline are relatively small. The special attention given to gasoline additives in Slovakia and Slovenia is a key issue in the success of their lead phase-out programs. The elimination of the problems caused by an aging car fleet through the use of lubricating additives in unleaded gasoline is a potential solution to the problem. Nevertheless, a lack of information in the SILAQ countries still prevails.
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| Western Experience | The experience of other countries, such as Finland, shows that the use of unleaded gasoline for both types of cars (i.e., those with engines designed for unleaded gasoline, and those for leaded) is the key issue to the rapid phase-out of lead from gasoline. Additionally, the introduction of catalytic converters and additives were also crucial measures.
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5.1 Policy approaches to the phase-out of lead |
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| Policy Approaches | Three general approaches, based on world-wide experiences in the phase-out of leaded gasoline, may be considered. These include:
The technology-based approach relies on a change in gasoline demand due to changing car technology (e.g., the use of catalytic converters). This option may be feasible in countries where:
The incentive policy approach uses price incentives and other policy measures to promote the use of unleaded gasoline in cars both with and without catalytic converters. Such an approach might promote alternating fueling practices such as: (i) using leaded gasoline occasionally, i.e., relying on the "lead memory" of the engine; or (ii) using lubricant additives for cars with soft valve seats which require a level of lubrication that was previously provided by lead. This approach may be combined with the gradual reduction of the lead content in gasoline and the promotion of catalytic converter use. Finally, the rapid phase-out policy encourages the use of unleaded gasoline (or prohibits the use of leaded gasoline altogether) before catalytic converters become universally applicable for the entire car vehicle fleet. This approach compels countries to shorten the transition period from the use of leaded fuel to an entirely unleaded gasoline market.
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| Slovak Experiences | Slovakia's positive experience could be drawn on more effectively where the slowly changing car fleets contain a substantial proportion of vehicles with soft valve seats, and domestic gasoline suppliers may need some time to adjust their capacity to the production of unleaded gasoline. Most West European countries, e.g., Great Britain and France have tended to follow this approach.
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| Soft-valve Seats | In the countries where the vehicle fleet includes a significant share of vehicles with soft valve seats, special gasoline brands may be designed for these cars or suitable additives introduced on the market. Such gasoline brands should contain a lubricant additive. This approach has been typically followed in countries importing all or most of their gasoline, or those with relatively homogeneous refining sectors capable of producing exclusively unleaded gasoline. Besides the health benefits, this approach also reduces costs by eliminating the need for a dual distribution system. It also eliminates the risks of misfuelling and potential damage to the catalytic converter.
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| Technology Combined with Policy | Considering the current conditions in most SILAQ countries, the technology-based approach alone requires a very long transition period because of the large numbers of old cars within the vehicle fleet. For instance, the average age of the vehicle fleet in Bulgaria and Slovakia tends to be around 15 years, compared with 6-9 years in the European Union. The incentive policy and rapid phase-out approaches offer a more expedient way to resolve the ecological problems caused by vehicle transport. The SILAQ countries have already started (or will start before year 2000) the implementation of programs which combine an incentive policy with regulations that ensure the reduction of the lead content in gasoline, and which support the use and import of cars with improved pollution characteristics. These programs include limitations on the import of cars not able to use unleaded gasoline (Bulgaria); requirements for catalytic converters on all new cars (Hungary and Poland); or mandatory catalytic converters for imported cars and domestically produced cars (Romania). The success of Slovakia's incentive policy which was later combined with the rapid phase-out approach to influence consumer behavior and to smooth the transition could be widely used for information campaigns in other SILAQ countries. In particular, it could help to overcome the problem of old vehicle fleets and the respective low turnover rates. Any phase-out strategy should include realistic schedules with clearly defined and communicated objectives and time-lines. These must be accompanied by the timely introduction and enforcement of corresponding regulations, announced well in advance. A gradual approach would provide sufficient adjustment time for the refineries, reduce the adjustment costs, and ensure that steps are taken to comply with the upcoming requirements. Importantly, during the transition period, awareness-raising measures can be taken to influence consumer behavior.
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