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German car buyers’ willingness to pay to reduce CO 2 emissions

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  • Martin Achtnicht

    ()

Abstract

Motorised 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 kilometre is a relevant attribute in car choices. Based on a stated preference experiment among potential car buyers from Germany, different mixed logit specifications are 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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Article provided by Springer in its journal Climatic Change.

Volume (Year): 113 (2012)
Issue (Month): 3 (August)
Pages: 679-697

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Handle: RePEc:spr:climat:v:113:y:2012:i:3:p:679-697
Contact details of provider: Web page: http://www.springer.com/economics/journal/10584

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Find related papers by JEL classification:
  • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
  • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
  • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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Cited by:

  1. 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.
  2. Galarraga, Ibon & Ramos, Ana & Lucas, Josu & Labandeira, Xavier, 2014. "The price of energy efficiency in the Spanish car market," Transport Policy, Elsevier, vol. 36(C), pages 272-282.
  3. 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).
  4. Anders Jensen & Elisabetta Cherchi & Juan Dios Ortúzar, 2014. "A long panel survey to elicit variation in preferences and attitudes in the choice of electric vehicles," Transportation, Springer, vol. 41(5), pages 973-993, September.
  5. 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.
  6. 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.
  7. 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".
  8. 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.
  9. Löschel, Andreas & Sturm, Bodo & Vogt, Carsten, 2013. "The demand for climate protection—Empirical evidence from Germany," Economics Letters, Elsevier, vol. 118(3), pages 415-418.
  10. Heinrichs, Heidi & Jochem, Patrick & Fichtner, Wolf, 2014. "Including road transport in the EU ETS (European Emissions Trading System): A model-based analysis of the German electricity and transport sector," Energy, Elsevier, vol. 69(C), pages 708-720.
  11. 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.
  12. 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).
  13. 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.
  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".
  15. 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.
  16. Alló, Maria & Loureiro, Maria L., 2014. "The role of social norms on preferences towards climate change policies: A meta-analysis," Energy Policy, Elsevier, vol. 73(C), pages 563-574.
  17. 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.
  18. Jèrome Massiani, 2011. "Modelling and evaluation of the diffusion of electric vehicles: existing models, results, and proposal for a new model," Working Papers 1106, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2011.
  19. 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".
  20. Blasch, Julia & Farsi, Mehdi, 2012. "Retail demand for voluntary carbon offsets – a choice experiment among Swiss consumers," MPRA Paper 41259, University Library of Munich, Germany.

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