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

  • Adriaan Perrels
  • Tarja Tuovinen

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

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Paper provided by Government Institute for Economic Research Finland (VATT) in its series Research Reports with number 168.

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Date of creation: 06 Mar 2012
Date of revision:
Handle: RePEc:fer:resrep:168
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  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. James Sallee, 2010. "The Taxation of Fuel Economy," NBER Working Papers 16466, National Bureau of Economic Research, Inc.
  6. Mandell, Svante, 2008. "Policies towards a more efficient car fleet," Working Papers 2008:12, Swedish National Road & Transport Research Institute (VTI).
  7. Turrentine, Thomas S. & Kurani, Kenneth S., 2007. "Car buyers and fuel economy?," Energy Policy, Elsevier, vol. 35(2), pages 1213-1223, February.
  8. Greene, David L., 2011. "Uncertainty, loss aversion, and markets for energy efficiency," Energy Economics, Elsevier, vol. 33(4), pages 608-616, July.
  9. Ozaki, Ritsuko & Sevastyanova, Katerina, 2011. "Going hybrid: An analysis of consumer purchase motivations," Energy Policy, Elsevier, vol. 39(5), pages 2217-2227, May.
  10. 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.
  11. Huang, Biao, 2007. "The Use of Pseudo Panel Data for Forecasting Car Ownership," MPRA Paper 7086, University Library of Munich, Germany.
  12. Vance, Colin & Mehlin, Markus, 2009. "Tax Policy and CO2 Emissions – An Econometric Analysis of the German Automobile Market," Ruhr Economic Papers 89, Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI), Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
  13. 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.
  14. Heikki Kemppi & Adriaan Perrels & Antti Lehtilä, 2001. "Assessment of the Macro-Economic Effects of Domestic Climate Policies for Finland," Research Reports 82, Government Institute for Economic Research Finland (VATT).
  15. 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.
  16. 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.
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