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The Impact of Policy Awareness: Evidence from Vehicle Choices Response to Fiscal Incentives

Author

Listed:
  • Davide Cerruti

    () (ETH Zurich, Switzerland)

  • Claudio Daminato

    () (ETH Zurich, Switzerland)

  • Massimo Filippini

    () (ETH Zurich, Switzerland)

Abstract

Isolating the role of limited knowledge, psychological frictions and policy characteristics is key when evaluating a public program and designing future policies. This paper explores the role of awareness about the presence of fiscal programs in determining their impact on individual choices. Our identification strategy exploits quasi-experimental variation in the introduction of fiscal incentives aimed at promoting the purchase of energy efficient vehicles, and a direct measure of policy awareness at the individual level. We find an important impact of awareness on consumers’ vehicle choices, highlighting that limited awareness may represent a critical barrier to the effectiveness of public programs.

Suggested Citation

  • Davide Cerruti & Claudio Daminato & Massimo Filippini, 2019. "The Impact of Policy Awareness: Evidence from Vehicle Choices Response to Fiscal Incentives," CER-ETH Economics working paper series 19/316, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  • Handle: RePEc:eth:wpswif:19-316
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    File URL: https://www.ethz.ch/content/dam/ethz/special-interest/mtec/cer-eth/cer-eth-dam/documents/working-papers/WP-19-316.pdf
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    References listed on IDEAS

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    Cited by:

    1. Massimo Filippini & Suchita Srinivasan, 2020. "Voluntary adoption of environmental standards and limited attention: Evidence from the food and beverage industry in Vietnam," CER-ETH Economics working paper series 20/338, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.

    More about this item

    Keywords

    Policy awareness; Fiscal programs; Environmental taxation; Vehicle choices;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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