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How private car purchasing trends offset efficiency gains and the successful energy policy response

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  • Ó Gallachóir, Brian P.
  • Howley, Martin
  • Cunningham, Stephen
  • Bazilian, Morgan

Abstract

In 2006, energy-related CO2 emissions from transport energy in Ireland were 168% above 1990 levels. Private cars were responsible for approx 45% of transport energy demand in 2006 (excluding fuel tourism). The average annual growth of new cars between 1990 and 2006 was 5.2%. This paper focuses on these new cars entering the private car fleet, in particular the purchasing trend towards larger size cars. This has considerably offset the improvements in the technical efficiency of individual car models. The analysis was carried out on the detailed data of each individual new vehicle entering the fleet in 2000-2006. The average CO2 emissions per kilometre for new petrol cars entering the Irish fleet grew from 166 to 168Â g CO2/km from 2000 to 2005 and reduced to 164 in 2006. For diesel cars the average reduced from 166 in 2000 to 161 in 2006. The paper also discusses how a recent change in vehicle registration taxation and annual motor tax had a significant impact purchasing trends by supporting lower emission vehicles. Cars with emissions up to 155Â g CO2/km represented 41% of new private cars sold in Ireland in 2007 compared with 84% during the period July-November 2008.

Suggested Citation

  • Ó Gallachóir, Brian P. & Howley, Martin & Cunningham, Stephen & Bazilian, Morgan, 2009. "How private car purchasing trends offset efficiency gains and the successful energy policy response," Energy Policy, Elsevier, vol. 37(10), pages 3790-3802, October.
    • Handle: RePEc:eee:enepol:v:37:y:2009:i:10:p:3790-3802
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    Citations

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    Cited by:

    1. Leinert, Stephan & Daly, Hannah & Hyde, Bernard & Gallachóir, Brian Ó, 2013. "Co-benefits? Not always: Quantifying the negative effect of a CO2-reducing car taxation policy on NOx emissions," Energy Policy, Elsevier, vol. 63(C), pages 1151-1159.
    2. L. (Lisa B.) Ryan & Ivan Petrov, 2019. "Vehicle Tax Design and Car Purchase Choices: A Case Study of Ireland," Open Access publications 10197/11466, School of Economics, University College Dublin.
    3. Daly, Hannah E. & Ó Gallachóir, Brian P., 2012. "Future energy and emissions policy scenarios in Ireland for private car transport," Energy Policy, Elsevier, vol. 51(C), pages 172-183.
    4. Calnan, P. & Deane, J.P. & Ó Gallachóir, B.P., 2013. "Modelling the impact of EVs on electricity generation, costs and CO2 emissions," Energy Policy, Elsevier, vol. 61(C), pages 230-237.
    5. L. (Lisa B.) Ryan & Andrew J. Kelly & Ivan Petrov & Yulu Guo & Sarah La Monaca, 2018. "An Assessment of the Social Costs and Benefits of Vehicle Tax Reform in Ireland," Open Access publications 10197/9906, School of Economics, University College Dublin.
    6. Hennessy, Hugh & Tol, Richard S.J., 2011. "The impact of tax reform on new car purchases in Ireland," Energy Policy, Elsevier, vol. 39(11), pages 7059-7067.
    7. Schipper, Lee, 2011. "Automobile use, fuel economy and CO2 emissions in industrialized countries: Encouraging trends through 2008?," Transport Policy, Elsevier, vol. 18(2), pages 358-372, March.
    8. Jennings, Mark & Ó Gallachóir, Brian P. & Schipper, Lee, 2013. "Irish passenger transport: Data refinements, international comparisons, and decomposition analysis," Energy Policy, Elsevier, vol. 56(C), pages 151-164.
    9. Sheinbaum-Pardo, Claudia & Chávez-Baeza, Carlos, 2011. "Fuel economy of new passenger cars in Mexico: Trends from 1988 to 2008 and prospects," Energy Policy, Elsevier, vol. 39(12), pages 8153-8162.
    10. Hennessy, Hugh & Tol, Richard S. J., 2010. "The Impact of Climate Policy on Private Car Ownership in Ireland," Papers WP342, Economic and Social Research Institute (ESRI).
    11. Zachariadis, Theodoros, 2013. "Gasoline, diesel and climate policy implications—Insights from the recent evolution of new car sales in Germany," Energy Policy, Elsevier, vol. 54(C), pages 23-32.
    12. Fu, Miao & Andrew Kelly, J., 2012. "Carbon related taxation policies for road transport: Efficacy of ownership and usage taxes, and the role of public transport and motorist cost perception on policy outcomes," Transport Policy, Elsevier, vol. 22(C), pages 57-69.
    13. Silitonga, A.S. & Atabani, A.E. & Mahlia, T.M.I., 2012. "Review on fuel economy standard and label for vehicle in selected ASEAN countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(3), pages 1683-1695.
    14. Rogan, Fionn & Dennehy, Emer & Daly, Hannah & Howley, Martin & Ó Gallachóir, Brian P., 2011. "Impacts of an emission based private car taxation policy - First year ex-post analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(7), pages 583-597, August.
    15. O’ Mahony, Tadhg & Zhou, Peng & Sweeney, John, 2012. "The driving forces of change in energy-related CO2 emissions in Ireland: A multi-sectoral decomposition from 1990 to 2007," Energy Policy, Elsevier, vol. 44(C), pages 256-267.
    16. Driscoll, Áine & Lyons, Seán & Mariuzzo, Franco & Tol, Richard S.J., 2013. "Simulating demand for electric vehicles using revealed preference data," Energy Policy, Elsevier, vol. 62(C), pages 686-696.
    17. Chiodi, Alessandro & Gargiulo, Maurizio & Deane, J.P. & Lavigne, Denis & Rout, Ullash K. & Ó Gallachóir, Brian P., 2013. "Modelling the impacts of challenging 2020 non-ETS GHG emissions reduction targets on Ireland′s energy system," Energy Policy, Elsevier, vol. 62(C), pages 1438-1452.
    18. Yan, Shiyu & Eskeland, Gunnar S., 2018. "Greening the vehicle fleet: Norway's CO2-Differentiated registration tax," Journal of Environmental Economics and Management, Elsevier, vol. 91(C), pages 247-262.
    19. Viri, Riku & Mäkinen, Johanna & Liimatainen, Heikki, 2021. "Modelling car fleet renewal in Finland: A model and development speed-based scenarios," Transport Policy, Elsevier, vol. 112(C), pages 63-79.
    20. Kok, Robert, 2015. "Six years of CO2-based tax incentives for new passenger cars in The Netherlands: Impacts on purchasing behavior trends and CO2 effectiveness," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 137-153.
    21. Daly, Hannah E. & Ó Gallachóir, Brian P., 2011. "Modelling future private car energy demand in Ireland," Energy Policy, Elsevier, vol. 39(12), pages 7815-7824.
    22. Hull, David & Ó Gallachóir, Brian P. & Walker, Neil, 2009. "Development of a modelling framework in response to new European energy-efficiency regulatory obligations: The Irish experience," Energy Policy, Elsevier, vol. 37(12), pages 5363-5375, December.

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