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The environmental Effect of Green Taxation : The case of the french "Bonus/Malus"

Author

Listed:
  • Xavier d'Haultfoeuille

    () (Crest)

  • Pauline Givord

    () (INSEE)

  • Xavier Boutin

    (European Commission-Team)

Abstract

At the beginning of 2008 was introduced in France a feebate on the purchase of new cars called the "Bonus/Malus". Since January 2008, the less polluting cars benefited from a price reduction of up to 1,000 euros, while the most polluting ones were subject to a taxation of 2,600 euros. We estimate the impact of this policy on carbon dioxide emissions in the short and long run. These emissions depend on the market shares and the average emissions per kilometer of each car, but also on their manufacturing and the number of kilometers traveled by their owners. We first develop a simple tractable model that relates car choice and mileage. We then estimate this model, using both the exhaustive dataset of car registrations and a recent transportation survey which provides information on individual journeys. We show that if the shift towards the classes benefiting from rebates is spectacular, the environmental impact of the policy is negative. The reform has notably increased sales, leading to an important increase in manufacturing and traveling emissions. We thus stress that such policies may be efficient tools for reducing CO2 emissions (French consumers do react to the feebate in their car choice), but should be designed with care to achieve their primary goal

Suggested Citation

  • Xavier d'Haultfoeuille & Pauline Givord & Xavier Boutin, 2012. "The environmental Effect of Green Taxation : The case of the french "Bonus/Malus"," Working Papers 2012-13, Center for Research in Economics and Statistics.
  • Handle: RePEc:crs:wpaper:2012-13
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    References listed on IDEAS

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    Cited by:

    1. Mireille Chiroleu-Assouline, 2015. "La fiscalité environnementale en France peut-elle devenir réellement écologique ?. État des lieux et conditions d’acceptabilité," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(3), pages 129-165.
    2. repec:eee:pubeco:v:155:y:2017:i:c:p:93-107 is not listed on IDEAS
    3. Galarraga, Ibon & Abadie, Luis M. & Kallbekken, Steffen, 2016. "Designing incentive schemes for promoting energy-efficient appliances: A new methodology and a case study for Spain," Energy Policy, Elsevier, vol. 90(C), pages 24-36.
    4. Bénédicte Meurisse, 2015. "On the relevance of differentiated car purchase taxes in light of the rebound effect," EconomiX Working Papers 2015-24, University of Paris Nanterre, EconomiX.
    5. Lee Schipper & Calanit Saenger & Anant Sudardshan, 2011. "Transport and Carbon Emissions in the United States: The Long View," Energies, MDPI, Open Access Journal, vol. 4(4), pages 1-19, March.
    6. Font Vivanco, David & Kemp, René & van der Voet, Ester, 2016. "How to deal with the rebound effect? A policy-oriented approach," Energy Policy, Elsevier, vol. 94(C), pages 114-125.
    7. van den Bijgaart, Inge, 2016. "Essays in environmental economics and policy," Other publications TiSEM 298bee2a-cb08-4173-9fe1-8, Tilburg University, School of Economics and Management.
    8. Travesset-Baro, Oriol & Gallachóir, Brian P.Ó. & Jover, Eric & Rosas-Casals, Marti, 2016. "Transport energy demand in Andorra. Assessing private car futures through sensitivity and scenario analysis," Energy Policy, Elsevier, vol. 96(C), pages 78-92.
    9. D’Haultfœuille, Xavier & Durrmeyer, Isis & Février, Philippe, 2016. "Disentangling sources of vehicle emissions reduction in France: 2003–2008," International Journal of Industrial Organization, Elsevier, vol. 47(C), pages 186-229.
    10. repec:kap:enreec:v:69:y:2018:i:1:d:10.1007_s10640-016-0067-6 is not listed on IDEAS
    11. Anna Alberini & Markus Bareit, 2016. "The Effect of Registration Taxes on New Car Sales and Emissions: Evidence from Switzerland," CER-ETH Economics working paper series 16/245, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    12. Rachel Croson & Nicolas Treich, 2014. "Behavioral Environmental Economics: Promises and Challenges," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, pages 335-351.
    13. Davide Cerruti & Anna Alberini & Joshua Linn, 2017. "Charging Drivers by the Pound: The Effects of the UK Vehicle Tax System," CER-ETH Economics working paper series 17/271, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    14. Proost, Stef & Thisse, Jacques-François, 2015. "Skilled Cities, Regional Disparities, and Efficient Transport: The state of the art and a research agenda," CEPR Discussion Papers 10790, C.E.P.R. Discussion Papers.
    15. Eliasson, Jonas & Pyddoke, Roger & Swärdh, Jan-Erik, 2016. "Distributional effects of taxes on car fuel, use, ownership and purchases," Working papers in Transport Economics 2016:11, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    16. Xavier d'Haultfoeuille & Isis Durrmeyer & Philippe Février, 2013. "The Effect of Public Policies on Consumers' Preferences : Lessons from the French Automobile Market," Working Papers 2013-14, Center for Research in Economics and Statistics.
    17. Pauline Givord & Céline Grislain-Letrémy & Helene Naegele, 2014. "How Does Fuel Taxation Impact New Car Purchases?: An Evaluation Using French Consumer-Level Data," Discussion Papers of DIW Berlin 1428, DIW Berlin, German Institute for Economic Research.
    18. Xavier d'Haultfoeuille & Isis Durrmeyer & Philippe Février, 2013. "The Effect of Public Policies on Consumers' Preferences : Lessons from the French Automobile Market," Working Papers 2013-14, Center for Research in Economics and Statistics.
    19. Anna Alberini & Markus Bareit & Adan Martinez-Cruz & Massimo Filippini, 2016. "The Impact of Emissions-Based Taxes on the Retirement of Used and Inefficient Vehicles: The Case of Switzerland," CER-ETH Economics working paper series 16/257, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.

    More about this item

    Keywords

    Environmental taxation; automobiles; carbon dioxide emissions; policy evaluation;

    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
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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