The environmental Effect of Green Taxation : The case of the french "Bonus/Malus"
AbstractAt the beginning of 2008 was introduced in France a feebate on the purchase of new cars called the “Bonus/Malus”. Since January 2008, the less polluting cars benefited from a price reduction of up to 1,000 euros, while the most polluting ones were subject to a taxation of 2,600 euros. We estimate the impact of this policy on carbon dioxide emissions in the short and long run. These emissions depend on the market shares and the average emissions per kilometer of each car, but also on their manufacturing and the number of kilometers traveled by their owners. We first develop a simple tractable model that relates car choice and mileage. We then estimate this model, using both the exhaustive dataset of car registrations and a recent transportation survey which provides information on individual journeys. We show that if the shift towards the classes benefiting from rebates is spectacular, the environmental impact of the policy is negative. The reform has notably increased sales, leading to an important increase in manufacturing and traveling emissions. We thus stress that such policies may be efficient tools for reducing CO2 emissions (French consumers do react to the feebate in their car choice), but should be designed with care to achieve their primary goal
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Bibliographic InfoPaper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2012-13.
Date of creation: Jul 2012
Date of revision:
Environmental taxation; automobiles; carbon dioxide emissions; policy evaluation;
Other versions of this item:
- X. D'Haultfoeuille & P. Givord & X. Boutin, 2011. "The Environmental Effect of Green Taxation: the Case of the French "Bonus/Malus"," Documents de Travail de la DESE - Working Papers of the DESE g2011-14, Institut National de la Statistique et des Etudes Economiques, DESE.
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-06 (All new papers)
- NEP-ENE-2012-10-06 (Energy Economics)
- NEP-ENV-2012-10-06 (Environmental Economics)
- NEP-RES-2012-10-06 (Resource Economics)
- NEP-TRE-2012-10-06 (Transport Economics)
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