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Environmental Impact of Subsidy Concepts for Stimulating Car Sales in Germany

Author

Listed:
  • Malte Scharf

    (Department of Methods for Product Development and Mechatronics, Technical University of Berlin, 10623 Berlin, Germany)

  • Ludger Heide

    (Department of Methods for Product Development and Mechatronics, Technical University of Berlin, 10623 Berlin, Germany)

  • Alexander Grahle

    (Department of Methods for Product Development and Mechatronics, Technical University of Berlin, 10623 Berlin, Germany)

  • Anne Magdalene Syré

    (Department of Methods for Product Development and Mechatronics, Technical University of Berlin, 10623 Berlin, Germany)

  • Dietmar Göhlich

    (Department of Methods for Product Development and Mechatronics, Technical University of Berlin, 10623 Berlin, Germany)

Abstract

In 2020, vehicle sales decreased dramatically due to the COVID-19 pandemic. Therefore, several voices have demanded a vehicle subsidy similar to the “environmental subsidy” in Germany in 2009. The ecological efficiency of vehicle subsidies is controversially discussed. This paper establishes a prognosis of the long-term environmental impacts of various car subsidy concepts. The CO 2 emissions of the German car fleet impacted by the purchase subsidies are determined. A balance model of the CO 2 emissions of the whole car life cycle is developed. The implementation of different subsidy scenarios directly affects the forecasted composition of the vehicle population and, therefore, the resulting life-cycle assessment. All scenarios compensate the additional emissions required by the production pull-in within the considered period and, hence, reduce the accumulated CO 2 emissions until 2030. In the time period 2019–2030 and for a total number of 0.72 million subsidized vehicles—compensating the decrease due to the COVID-19 pandemic—savings of between 1.31 and 7.56 million t CO 2 eq. are generated compared to the scenario without a subsidy. The exclusive funding of battery electric vehicles (BEVs) is most effective, with an ecological break-even in 2025.

Suggested Citation

  • Malte Scharf & Ludger Heide & Alexander Grahle & Anne Magdalene Syré & Dietmar Göhlich, 2020. "Environmental Impact of Subsidy Concepts for Stimulating Car Sales in Germany," Sustainability, MDPI, vol. 12(23), pages 1-27, December.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:23:p:10037-:d:454557
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    References listed on IDEAS

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    1. Feng Cui & Tinghui Zhang & Xingping Lai & Jiantao Cao & Pengfei Shan, 2019. "Study on the Evolution Law of Overburden Breaking Angle under Repeated Mining and the Application of Roof Pressure Relief," Energies, MDPI, vol. 12(23), pages 1-20, November.
    2. Dawid Szurgacz & Jarosław Brodny, 2019. "Analysis of the Influence of Dynamic Load on the Work Parameters of a Powered Roof Support’s Hydraulic Leg," Sustainability, MDPI, vol. 11(9), pages 1-13, May.
    3. Dawid Szurgacz & Jarosław Brodny, 2019. "Tests of Geometry of the Powered Roof Support Section," Energies, MDPI, vol. 12(20), pages 1-19, October.
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    Cited by:

    1. Dietmar Göhlich & Kai Nagel & Anne Magdalene Syré & Alexander Grahle & Kai Martins-Turner & Ricardo Ewert & Ricardo Miranda Jahn & Dominic Jefferies, 2021. "Integrated Approach for the Assessment of Strategies for the Decarbonization of Urban Traffic," Sustainability, MDPI, vol. 13(2), pages 1-31, January.
    2. Nenming Wang & Guwen Tang, 2022. "A Review on Environmental Efficiency Evaluation of New Energy Vehicles Using Life Cycle Analysis," Sustainability, MDPI, vol. 14(6), pages 1-35, March.
    3. Yu, Huaying & Wei, Wei & Li, Jinhe & Li, Ying, 2022. "The impact of green digital finance on energy resources and climate change mitigation in carbon neutrality: Case of 60 economies," Resources Policy, Elsevier, vol. 79(C).

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