IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v38y2010i1p120-133.html
   My bibliography  Save this article

The Incidence of Hybrid Automobile Tax Preferences

Author

Listed:
  • B. Andrew Chupp

    (Georgia State University, Atlanta, GA, USA, bchupp@ilstu.edu)

  • Katie Myles

    (Berry College, Rome, GA, USA)

  • E. Frank Stephenson

    (Berry College, Rome, GA, USA)

Abstract

We use national and California price data from January, 2002 to June, 2009 for three hybrid and five non-hybrid car models to estimate the share of federal tax preferences for purchasing hybrid cars that accrues to car sellers. Our preferred estimates suggest that almost one-half of the subsidy is capitalized into car prices, but some specifications lead to larger estimated benefits for car suppliers. Our results also show (1) that a California program providing HOV stickers to owners of hybrid fuel automobiles led to large increases in the price of those vehicles, and (2) that failing to control for rising gas prices which increase the demand for fuel efficient vehicles leads to upwardly biased estimates of the amount of the hybrid car tax subsidy captured by automakers.

Suggested Citation

  • B. Andrew Chupp & Katie Myles & E. Frank Stephenson, 2010. "The Incidence of Hybrid Automobile Tax Preferences," Public Finance Review, , vol. 38(1), pages 120-133, January.
  • Handle: RePEc:sae:pubfin:v:38:y:2010:i:1:p:120-133
    as

    Download full text from publisher

    File URL: http://pfr.sagepub.com/content/38/1/120.abstract
    Download Restriction: no

    More about this item

    Keywords

    subsidies; hybrid automobiles; incidence;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:38:y:2010:i:1:p:120-133. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.