Qualitative Effects of Cash-For-Clunkers Programs
We document how automobile scrappage incentives similar to the ‘2009 Car Allowance Rebate System’ (cars) may influence drivers’ tastes in favor of fuel-efficient automobiles. Between 1994 and 2000 the market share of diesel automobiles doubled after Spanish government sponsored two scrappage programs. We show that demand for diesel automobiles was not driven only by better mileage; that gasoline and diesel models became closer substitutes over time; and that automobile manufacturers reduced their markups on gasoline automobiles as their demand decreased. These programs simply accelerated a change of preference that was already on its way when they were implemented.
|Date of creation:||Oct 2009|
|Date of revision:|
|Contact details of provider:|| Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.|
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Audrey Laporte & Frank Windmeijer, 2005.
"Estimation of Panel Data Models with Binary Indicators when Treatment Effects are not Constant over Time,"
laporte-04-01, University of Toronto, Department of Economics.
- Laporte, Audrey & Windmeijer, Frank, 2005. "Estimation of panel data models with binary indicators when treatment effects are not constant over time," Economics Letters, Elsevier, vol. 88(3), pages 389-396, September.
- Matthew E. Kahn, 1996. "New Evidence on Trends in Vehicle Emissions," RAND Journal of Economics, The RAND Corporation, vol. 27(1), pages 183-196, Spring.
- Shanjun Li & Christopher Timmins & Roger H. von Haefen, 2009.
"How Do Gasoline Prices Affect Fleet Fuel Economy?,"
American Economic Journal: Economic Policy,
American Economic Association, vol. 1(2), pages 113-37, August.
- Inge Mayeres & Stef Proost, 1998.
"Marginal Tax Reform, Externalities and Income Distribution,"
Working Papers Department of Economics
ces9832, KU Leuven, Faculty of Economics and Business, Department of Economics.
- Mayeres, Inge & Proost, Stef, 2001. "Marginal tax reform, externalities and income distribution," Journal of Public Economics, Elsevier, vol. 79(2), pages 343-363, February.
- Esteban Susanna, 2007. "Effective Scrappage Subsidies," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 7(1), pages 1-32, February.
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:7517. 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: ()
If references are entirely missing, you can add them using this form.