Car Age, Taxation, Scrappage Premiums and the ELV Directive
AbstractA chain of replacement model is used to examine the effects of automobile taxes and of a scrappage premium on the life length of cars, and on the size of the car fleet. The predictions of the model are tested on data on the scrappage of cars in Sweden 1989-2002. The theoretical model predicts that increased taxes on the purchase of cars should increase the life length of cars, and reduce the number of cars. A scrappage premium would have the opposite effects. Changes in periodic taxes would have no effects on the life length of automobiles, but would reduce the size of the car stock. The econometric analysis indicates, however, that the effects both on the life-length of cars, and on the size of the car parc are small. On the basis of the conclusions from the theoretical and the empirical analysis, the possible implications of the European Union's Directive 2000/53/EC on end-of life vehicles (ELV) are discussed.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 591.
Length: 35 pages
Date of creation: 17 Mar 2003
Date of revision:
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More information through EDIRC
Taxes; Automobiles; Accelerated Vehicle Retirement Programs; Scrappage; ELV Directive;
Find related papers by JEL classification:
- H29 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other
- L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-04-02 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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NBER Working Papers
6048, National Bureau of Economic Research, Inc.
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