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Hardly More Than a Flash in the Pan - Evaluation Studies on Scrapping Premiums at a Glance

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  • Christpher Leisinger
  • Felix Rösel

Abstract

We provide an overview of studies on the effects of car scrapping and purchase premiums. These premiums boost car sales in the short term. In the medium term, however, hardly any more cars are sold. Many consumers would have bought a car anyway, would prefer to use the premium to buy one, or spend less money on other consumer goods after buying a car. The environmental impact of purchase premiums is unclear.

Suggested Citation

  • Christpher Leisinger & Felix Rösel, 2020. "Hardly More Than a Flash in the Pan - Evaluation Studies on Scrapping Premiums at a Glance," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 27(03), pages 25-27, June.
    • Handle: RePEc:ces:ifodre:v:27:y:2020:i:03:p:25-27
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    References listed on IDEAS

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    1. Petr Maleček & Ota Melcher, 2016. "Cross-Border Effects of Car Scrapping Schemes: The Case of the German Car Scrapping Programme and its Effects on the Czech Economy," Prague Economic Papers, Prague University of Economics and Business, vol. 2016(5), pages 560-576.
    2. Böckers, Veit & Heimeshoff,Ulrich & Müller, Andrea, 2012. "Pull-forward effects in the German car scrappage scheme: A time series approach," DICE Discussion Papers 56, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    3. Jiménez, Juan Luis & Perdiguero, Jordi & García, Carmen, 2016. "Evaluation of subsidies programs to sell green cars: Impact on prices, quantities and efficiency," Transport Policy, Elsevier, vol. 47(C), pages 105-118.
    4. Grigolon, Laura & Leheyda, Nina & Verboven, Frank, 2016. "Scrapping subsidies during the financial crisis — Evidence from Europe," International Journal of Industrial Organization, Elsevier, vol. 44(C), pages 41-59.
    5. Cantos-Sánchez, Pedro & Gutiérrez-i-Puigarnau, Eva & Mulalic, Ismir, 2018. "The impact of scrappage programmes on the demand for new vehicles: Evidence from Spain," Research in Transportation Economics, Elsevier, vol. 70(C), pages 83-96.
    6. Klößner, Stefan & Pfeifer, Gregor, 2015. "Synthesizing Cash for Clunkers: Stabilizing the Car Market, Hurting the Environment," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113207, Verein für Socialpolitik / German Economic Association.
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