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German car buyers' willingness to pay to reduce CO2 emissions

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  • Achtnicht, Martin

Abstract

Motorized individual transport strongly contributes to global CO2 emissions, due to its intensive usage of fossil fuels. Current political efforts addressing this issue (i.e. emission performance standards in the EU) are directed towards car manufacturers. This paper focuses on the demand side. It examines whether CO2 emissions per kilometer is a relevant attribute in car choices. Based on a choice experiment among potential car buyers from Germany, a mixed logit specification is estimated. In addition, distributions of willingness-to-pay measures for an abatement of CO2 emissions are obtained. The results suggest that the emissions performance of a car matters substantially, but its consideration varies heavily across the sampled population. In particular, some evidence on gender, age and education effects on climate concerns is provided. --

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 09-058 [rev.].

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Date of creation: 2012
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Handle: RePEc:zbw:zewdip:09058r

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Keywords: Choice experiment; CO2 emissions; Mixed logit; Passenger cars; Willingness to pay;

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Citations

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Cited by:
  1. Hackbarth, André & Madlener, Reinhard, 2011. "Consumer Preferences for Alternative Fuel Vehicles: A Discrete Choice Analysis," FCN Working Papers 20/2011, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
  2. Hackbarth, André & Madlener, Reinhard, 2013. "Willingness-to-Pay for Alternative Fuel Vehicle Characteristics: A Stated Choice Study for Germany," FCN Working Papers 20/2013, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
  3. Gottschalk, Sandra, 2013. "The Research Data Centre of the Centre for European Economic Research (ZEW-FDZ)," ZEW Discussion Papers 13-051, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Achtnicht, Martin & Bühler, Georg & Hermeling, Claudia, 2012. "Impact of service station networks on purchase decisions of alternative-fuel vehicles," ZEW Discussion Papers 08-088 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. David Gaker & Joan L. Walker, 2013. "Revealing the Value of “Green” and the Small Group with a Big Heart in Transportation Mode Choice," Sustainability, MDPI, Open Access Journal, vol. 5(7), pages 2913-2927, July.
  6. Achtnicht, Martin, 2011. "Do environmental benefits matter? Evidence from a choice experiment among house owners in Germany," Ecological Economics, Elsevier, vol. 70(11), pages 2191-2200, September.
  7. Löschel, Andreas & Sturm, Bodo & Uehleke, Reinhard, 2013. "Revealed preferences for climate protection when the purely individual perspective is relaxed: Evidence from a framed field experiment," ZEW Discussion Papers 13-006, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Daziano, Ricardo A., 2013. "Conditional-logit Bayes estimators for consumer valuation of electric vehicle driving range," Resource and Energy Economics, Elsevier, vol. 35(3), pages 429-450.
  9. Daziano, Ricardo A. & Achtnicht, Martin, 2013. "Accounting for uncertainty in willingness to pay for environmental benefits," ZEW Discussion Papers 13-059, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  10. Jérôme Massiani & Jörg Radeke, . "Cost-Benefit Analysis of policies for the development of electric vehicles in Germany: methods and results," Working Papers 2013:02, Department of Economics, University of Venice "Ca' Foscari".
  11. Julia Blasch & Mehdi Farsi, 2012. "Retail demand for voluntary carbon offsets - A choice experiment among Swiss consumers," IED Working paper 12-18, IED Institute for Environmental Decisions, ETH Zurich.
  12. Jérôme Massiani, 2013. "SP surveys for electric and alternative fuel vehicles: are we doing the right thing?," Working Papers 2013_01, Department of Economics, University of Venice "Ca' Foscari".
  13. Daziano, Ricardo A. & Achtnicht, Martin, 2012. "Forecasting adoption of ultra-low-emission vehicles using the GHK simulator and Bayes estimates of a multinomial probit model," ZEW Discussion Papers 12-017, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  14. Jérôme Massiani, 2013. "The use of Stated Preferences to forecast alternative fuel vehicles market diffusion: Comparisons with other methods and proposal for a Synthetic Utility Function," Working Papers 2013:12, Department of Economics, University of Venice "Ca' Foscari".

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