Policy development of a CO2 based Bonus-Malus sysem for new passengers vehicles

As part of its efforts to reduce GHG emissions from the transport sector, the Moroccan government aims to introduce a CO2-based bonus-malus system for new passenger vehicles. The bonus-malus system, also referred to as a feebate scheme, imposes a fee on high-carbon vehicles and gives a rebate to low-carbon cars so that consumers can be induced to purchase vehicles with low CO2 emissions. It can be a promising fiscal policy option because the system involves a market-based instrument that can affect consumer behavior, in contrast to command-and-control regulations that may be economically inefficient.