Abstract
In consequence of non-compliance emissions vehicle maintenance is essential. There are two alternatives either to repair the engine`s components or replace them. The economic aspect and emission level considerations come into making the optimal choice. This study attempt to compare the impact of several repairs versus replacements alternatives during the maintenance process and its impact on the probability to pass the emission test and its cost. We examine alternatives which mostly applied to four major components of vehicle engine in the first stage of maintenance process. The bivariate probit model was applied to examine the impact of chosen alternatives on the probability to pass the Hydrocarbon and Carbon Monoxide emission. Estimation results shows that the probability to pass the emission test of Hydrocarbon is differs significantly when some engine components was repaired than when all new one were installed. The number of repair parts, replace parts and pollutants level also affects significantly on the actual cost. The reduction of pollutants level also influence on the fruitfulness of maintenance process and actual cost. This actual cost might further develop as the basis to calculate minimum vehicle emission charging as the other alternative for non-compliance vehicles.
