Designing Carbon Taxation Schemes for Automobiles: A Simulation Exercise for Germany
AbstractVehicle taxation based on CO2 emissions is increasingly being adopted worldwide in order to shift consumer purchases to low-carbon cars, yet little is known about the effectiveness and overall economic impact of these schemes. We focus on feebate schemes, which impose a fee on high-carbon vehicles and give a rebate to purchasers of low-carbon automobiles. We estimate a discrete choice model of demand for automobiles in Germany and simulate the impact of alternative feebate schemes on emissions, consumer welfare, public revenues and firm profits. The analysis shows that a well-designed scheme can lead to emission reductions without reducing overall welfare.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8782.
Date of creation: Jan 2012
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Other versions of this item:
- Adamos Adamou & Sofronis Clerides & Theodoros Zachariadis, 2011. "Designing Carbon Taxation Schemes for Automobiles: A Simulation Exercise for Germany," Working Papers 2011.96, Fondazione Eni Enrico Mattei.
- Adamos Adamou & Sofronis Clerides & Theodoros Zachariadis, 2012. "Designing Carbon Taxation Schemes for Automobiles: A Simulation Exercise for Germany," University of Cyprus Working Papers in Economics 01-2012, University of Cyprus Department of Economics.
- L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
- Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Costs; Distributional Effects; Employment Effects
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-28 (All new papers)
- NEP-CMP-2012-03-28 (Computational Economics)
- NEP-ENE-2012-03-28 (Energy Economics)
- NEP-ENV-2012-03-28 (Environmental Economics)
- NEP-EUR-2012-03-28 (Microeconomic European Issues)
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