IDEAS home Printed from https://ideas.repec.org/p/fer/resrep/168.html
   My bibliography  Save this paper

The Effectiveness of Differentiation of the Finnish Car Purchase Tax according to Carbon Dioxide Emission Performance

Author

Listed:
  • Perrels, Adriaan
  • Tuovinen, Tarja

Abstract

The study concerns an assessment of the effectiveness of car purchase tax differentiation according to the CO2-emission performance of newly sold cars as implemented in Finland. This policy instrument came into force as of 1 January 2008. The effectiveness of the instrument is assessed by means of decomposition of car sales by key features of cars and by estimation of impact relations between changes in the emission performance of newly sold cars and various explanatory variables, including the imputed tax differentiation based price differences

Suggested Citation

  • Perrels, Adriaan & Tuovinen, Tarja, 2012. "The Effectiveness of Differentiation of the Finnish Car Purchase Tax according to Carbon Dioxide Emission Performance," Research Reports 168, VATT Institute for Economic Research.
    • Handle: RePEc:fer:resrep:168
    as

    Download full text from publisher

    File URL: https://www.doria.fi/handle/10024/148705
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Huang, Biao, 2007. "The Use of Pseudo Panel Data for Forecasting Car Ownership," MPRA Paper 7086, University Library of Munich, Germany.
    2. James M. Sallee, 2011. "The Taxation of Fuel Economy," Tax Policy and the Economy, University of Chicago Press, vol. 25(1), pages 1-38.
    3. Kenneth A. Small & Kurt Van Dender, 2007. "Fuel Efficiency and Motor Vehicle Travel: The Declining Rebound Effect," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 25-52.
    4. Golob, Thomas F. & Kim, Seyoung & Ren, Weiping, 1996. "How Households Use Different Types of Vehicles: A Structural Driver Allocation and Usage Model," University of California Transportation Center, Working Papers qt6xx6j51x, University of California Transportation Center.
    5. Charles Raux, 2010. "The potential for CO2 emissions trading in transport: the case of personal vehicles and freight," Post-Print halshs-00566195, HAL.
    6. Brownstone, David & Bunch, David S. & Train, Kenneth, 2000. "Joint mixed logit models of stated and revealed preferences for alternative-fuel vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 34(5), pages 315-338, June.
    7. Cowi A/S, 2002. "Fiscal Measures to Reduce CO2 Emissions from New Passenger Cars," Taxation Studies 0008, Directorate General Taxation and Customs Union, European Commission.
    8. Sallee, James M. & Slemrod, Joel, 2012. "Car notches: Strategic automaker responses to fuel economy policy," Journal of Public Economics, Elsevier, vol. 96(11), pages 981-999.
    9. Luc Bastard, 2010. "The Impact of Economic Instruments on the Auto Industry and the Consequences of Fragmenting Markets: Focus on the EU Case," OECD/ITF Joint Transport Research Centre Discussion Papers 2010/8, OECD Publishing.
    10. Soren T. Anderson & Ian W. H. Parry & James M. Sallee & Carolyn Fischer, 2011. "Automobile Fuel Economy Standards: Impacts, Efficiency, and Alternatives," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(1), pages 89-108, Winter.
    11. Greene, David L., 2011. "Uncertainty, loss aversion, and markets for energy efficiency," Energy Economics, Elsevier, vol. 33(4), pages 608-616, July.
    12. Shiau, Ching-Shin Norman & Michalek, Jeremy J. & Hendrickson, Chris T., 2009. "A structural analysis of vehicle design responses to Corporate Average Fuel Economy policy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(9-10), pages 814-828, November.
    13. Bhat, Chandra R. & Sen, Sudeshna & Eluru, Naveen, 2009. "The impact of demographics, built environment attributes, vehicle characteristics, and gasoline prices on household vehicle holdings and use," Transportation Research Part B: Methodological, Elsevier, vol. 43(1), pages 1-18, January.
    14. Brownstone, David & Bunch, David S. & Train, Kenneth, 2000. "Joint mixed logit models of stated and revealed preferences for alternative-fuel vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 34(5), pages 315-338, June.
    15. Turrentine, Thomas S. & Kurani, Kenneth S., 2007. "Car buyers and fuel economy?," Energy Policy, Elsevier, vol. 35(2), pages 1213-1223, February.
    16. Santos, Georgina & Behrendt, Hannah & Maconi, Laura & Shirvani, Tara & Teytelboym, Alexander, 2010. "Part I: Externalities and economic policies in road transport," Research in Transportation Economics, Elsevier, vol. 28(1), pages 2-45.
    17. Mandell, Svante, 2009. "Policies towards a more efficient car fleet," Energy Policy, Elsevier, vol. 37(12), pages 5184-5191, December.
    18. Storchmann, Karl, 2005. "Long-Run Gasoline demand for passenger cars: the role of income distribution," Energy Economics, Elsevier, vol. 27(1), pages 25-58, January.
    19. Kemppi, Heikki & Perrels, Adriaan & Lehtilä, Antti, 2001. "Assessment of the Macro-Economic Effects of Domestic Climate Policies for Finland," Research Reports 82, VATT Institute for Economic Research.
    20. Diamond, David, 2009. "The impact of government incentives for hybrid-electric vehicles: Evidence from US states," Energy Policy, Elsevier, vol. 37(3), pages 972-983, March.
    21. Giblin, S. & McNabola, A., 2009. "Modelling the impacts of a carbon emission-differentiated vehicle tax system on CO2 emissions intensity from new vehicle purchases in Ireland," Energy Policy, Elsevier, vol. 37(4), pages 1404-1411, April.
    22. Golob, Thomas F. & Kim, Seyoung & Ren, Weiping, 1996. "How households use different types of vehicles: A structural driver allocation and usage model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 30(2), pages 103-118, March.
    23. David L. Greene, 2010. "Why the New Market for New Passenger Cars Generally Undervalues Fuel Economy," OECD/ITF Joint Transport Research Centre Discussion Papers 2010/6, OECD Publishing.
    24. Rogan, Fionn & Dennehy, Emer & Daly, Hannah & Howley, Martin & Ó Gallachóir, Brian P., 2011. "Impacts of an emission based private car taxation policy - First year ex-post analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(7), pages 583-597, August.
    25. Vance, Colin & Mehlin, Markus, 2009. "Tax Policy and CO2 Emissions – An Econometric Analysis of the German Automobile Market," Ruhr Economic Papers 89, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    26. Ozaki, Ritsuko & Sevastyanova, Katerina, 2011. "Going hybrid: An analysis of consumer purchase motivations," Energy Policy, Elsevier, vol. 39(5), pages 2217-2227, May.
    27. Storchmann, Karl, 2005. "Erratum to "Long-run gasoline demand for passenger cars: The role of income distribution" [Energy Economics, 27 (1), 25-58]," Energy Economics, Elsevier, vol. 27(4), pages 687-687, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. von Rosenstiel, Dirk Peters & Heuermann, Daniel F. & Hüsig, Stefan, 2015. "Why has the introduction of natural gas vehicles failed in Germany?—Lessons on the role of market failure in markets for alternative fuel vehicles," Energy Policy, Elsevier, vol. 78(C), pages 91-101.
    2. Brand, Christian & Anable, Jillian & Tran, Martino, 2013. "Accelerating the transformation to a low carbon passenger transport system: The role of car purchase taxes, feebates, road taxes and scrappage incentives in the UK," Transportation Research Part A: Policy and Practice, Elsevier, vol. 49(C), pages 132-148.
    3. Adamou, Adamos & Clerides, Sofronis & Zachariadis, Theodoros, 2011. "Designing Carbon Taxation Schemes for Automobiles: A Simulation Exercise for Germany," Climate Change and Sustainable Development 120047, Fondazione Eni Enrico Mattei (FEEM).
    4. Adamos Adamou & Sofronis Clerides & Theodoros Zachariadis, 2012. "Assessment of CO2-Oriented Vehicle Tax Reforms: A Case Study of Greece," University of Cyprus Working Papers in Economics 04-2012, University of Cyprus Department of Economics.
    5. Tesemma, Tewodros, 2023. "Encouraging adoption of fuel-efficient vehicles – A policy reform evaluation from Ethiopia," Working Papers in Economics 838, University of Gothenburg, Department of Economics.
    6. Adamos Adamou & Sofronis Clerides & Theodoros Zachariadis, 2012. "Trade-offs in CO2-Oriented Vehicle Tax Reforms: A Case Study of Greece," Working Paper series 33_12, Rimini Centre for Economic Analysis.
    7. Chandra, Minal, 2022. "Investigating the impact of policies, socio-demography and national commitments on electric-vehicle demand: Cross-country study," Journal of Transport Geography, Elsevier, vol. 103(C).
    8. Sykes, Maxwell & Axsen, Jonn, 2017. "No free ride to zero-emissions: Simulating a region's need to implement its own zero-emissions vehicle (ZEV) mandate to achieve 2050 GHG targets," Energy Policy, Elsevier, vol. 110(C), pages 447-460.
    9. Daziano, Ricardo A. & Chiew, Esther, 2012. "Electric vehicles rising from the dead: Data needs for forecasting consumer response toward sustainable energy sources in personal transportation," Energy Policy, Elsevier, vol. 51(C), pages 876-894.
    10. Proost, Stef & Van Dender, Kurt, 2012. "Energy and environment challenges in the transport sector," Economics of Transportation, Elsevier, vol. 1(1), pages 77-87.
    11. Sun, Shanxia & Delgado, Michael & Khanna, Neha, 2017. "Hybrid Vehicles and Household Driving Behavior: Implications for Miles Traveled and Gasoline Consumption," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258502, Agricultural and Applied Economics Association.
    12. James M. Sallee, 2014. "Rational Inattention and Energy Efficiency," Journal of Law and Economics, University of Chicago Press, vol. 57(3), pages 781-820.
    13. Wolf, Ingo & Schröder, Tobias & Neumann, Jochen & de Haan, Gerhard, 2015. "Changing minds about electric cars: An empirically grounded agent-based modeling approach," Technological Forecasting and Social Change, Elsevier, vol. 94(C), pages 269-285.
    14. Jiménez, Juan Luis & Perdiguero, Jordi & García, Carmen, 2016. "Evaluation of subsidies programs to sell green cars: Impact on prices, quantities and efficiency," Transport Policy, Elsevier, vol. 47(C), pages 105-118.
    15. She, Zhen-Yu & Qing Sun, & Ma, Jia-Jun & Xie, Bai-Chen, 2017. "What are the barriers to widespread adoption of battery electric vehicles? A survey of public perception in Tianjin, China," Transport Policy, Elsevier, vol. 56(C), pages 29-40.
    16. Huse, Cristian, 2014. "Fast and Furious (and Dirty): How Asymmetric Regulation May Hinder Environmental Policy," MPRA Paper 48909, University Library of Munich, Germany.
    17. Soren T. Anderson & James M. Sallee, 2016. "Designing Policies to Make Cars Greener: A Review of the Literature," NBER Working Papers 22242, National Bureau of Economic Research, Inc.
    18. Sun, Shanxia & Delgado, Michael S. & Khanna, Neha, 2019. "Hybrid vehicles, social signals and household driving: Implications for miles traveled and gasoline consumption," Energy Economics, Elsevier, vol. 84(C).
    19. Sierzchula, William & Bakker, Sjoerd & Maat, Kees & van Wee, Bert, 2014. "The influence of financial incentives and other socio-economic factors on electric vehicle adoption," Energy Policy, Elsevier, vol. 68(C), pages 183-194.
    20. Alberini, Anna & Di Cosmo, Valeria & Bigano, Andrea, 2019. "How are fuel efficient cars priced? Evidence from eight EU countries," Energy Policy, Elsevier, vol. 134(C).

    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:fer:resrep:168. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anita Niskanen (email available below). General contact details of provider: https://edirc.repec.org/data/vatttfi.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.