Scrapping subsidies and the automobile industry: an economic evaluation to the Italian case
AbstractThe paper presents an economic evaluation of the scrapping subsidies, often planned in Italy during the past few years, which represent, as the legislator clearly pointed out, a tool directed to reduce air pollution, according to the EU's politics of environmental conservation. Obviously, in a period of crisis, either of the whole economy or of the sector considered, such incentives might also work as support to the automobile industry. The study explores a Regulatory Impact Evaluation (RIE), an ex-post evaluation of the existing measures, investigating both, the efficacy and the efficiency (cost and benefits) of the subsidies in force in Italy during 2007, reaching useful conclusions to fulfill this kind of measures. In this sense, a RIE, complementary to a Regulatory Impact Analysis (RIA), is suggested. On a methodological basis, the paper highlights three basic issues: i) the likely consumers' strategic choices which, following the government's introduction of incentives, decide to sell and buy a new car; ii) the correct time horizon for the evaluation of costs and benefits resulting from the introduction of the incentives, especially when it anticipates a demand for goods which remains nevertheless down the line; iii) the importance of using a disaggregated approach to analyse each subject directly or indirectly involved in the measure , in order to estimate its efficacy in the pursuit of its own aims.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Società editrice il Mulino in its journal Economia dei Servizi.
Volume (Year): (2009)
Issue (Month): 2 ()
Contact details of provider:
scrapping subsidies; environmental subsidies; lump sum transfer; cost benefit;
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.