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Profit Maximization of Car Manufacturers Facing EU CO2 Emission Penalties From 2021
 Leamer, Anthony David ; Večeř, Jan (advisor) ; Antoch, Jaromír (referee)
Title: Profit maximization of car manufacturers facing EU CO2 emission penalties from 2021 Author: Anthony David Leamer Department: Department of Probability and Mathematical Statistics Supervisor: prof. RNDr. Jan Večeř, Ph.D., Department of Probability and Mathematical Statistics Abstract: This paper sheds light on the newly coming emissions penalization sys- tem imposed on passenger vehicles registered in the EU. We analyze the penalty based on how it influences profit of the car manufacturers. After optimizing the profit margins car manufacturers impose on different vehicles we discuss what this means for the consumer and the manufacturer. We seek to answer the ques- tion 'Who is going to pay the penalty?'. In the last chapter we analyze real data to see if the penalty will motivate manufacturers to produce more eco-friendly passenger cars. The data shows that the manufacturers will lose profit until the fleets' average emissions fall within the limits. The maximization apparatus developed in this paper is indeed standard - in the sense that there are no new theories developed - although the problem is new to the extent that it requires new creative use of specific parts of optimization theory. Moreover the decision of the EU to implement drastic measures to bring down, 'on road CO2 emissions', leads...
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