IDEAS home Printed from https://ideas.repec.org/p/hhs/ctswps/2015_006.html
   My bibliography  Save this paper

Evaluation of bonus-malus systems for reducing car fleet CO2 emissions in Sweden

Author

Abstract

Early 2014, an official Swedish government investigation report (FFF-report) was released proposing a policy package to promote a Fossil Free Fleet in Sweden by 2050. One objective of this policy package is to design a bonus-malus system that pushes the Swedish fleet composition towards the EU objectives of the average CO2 emissions of 95 g/km for new cars by 2021. The proposed scenarios address cars bought by private persons as well as by companies. These scenarios differ in designs for registration tax, vehicle circulation tax, clean car premiums, company car benefits tax and fuel tax. We use the Swedish car fleet model system to predict the effects of the proposed scenarios on the Swedish car fleet composition. Also, we build a simple supply model to predict future supply. Our model results show that none of the three proposed scenarios is actually successful enough to meet the Swedish average CO2 emissions target of 95 g/km in 2020. The average CO2 emissions in two of these scenarios are actually higher than in the business as usual scenario. Relative to a business as usual scenario the number of ethanol and gas cars is reduced in the other scenarios which are negative results in terms of fossil fuel independence. Also, the bonus-malus system gives a positive net result in terms of budget effects showing that car buyers choose to pay the malus for a car with higher emissions rather than to be attracted by the bonus of a car with lower emissions.

Suggested Citation

  • Habibi, Shiva & Beser Hugosson, Muriel & Sundbergh, Pia & Algers, Staffan, 2015. "Evaluation of bonus-malus systems for reducing car fleet CO2 emissions in Sweden," Working papers in Transport Economics 2015:6, CTS - Centre for Transport Studies Stockholm (KTH and VTI), revised 27 Sep 2016.
    • Handle: RePEc:hhs:ctswps:2015_006
    Note: This paper has been invalidated and replaced by CTS Working Paper 2016:19 "Car fleet policy evaluation: the case of a Bonus-Malus system in Sweden" http://swopec.hhs.se/ctswps/abs/ctswps2016_019.htm
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Mabit, Stefan L., 2014. "Vehicle type choice under the influence of a tax reform and rising fuel prices," Transportation Research Part A: Policy and Practice, Elsevier, vol. 64(C), pages 32-42.
    2. Sabreena Anowar & Naveen Eluru & Luis F. Miranda-Moreno, 2014. "Alternative Modeling Approaches Used for Examining Automobile Ownership: A Comprehensive Review," Transport Reviews, Taylor & Francis Journals, vol. 34(4), pages 441-473, 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. Pyddoke, Roger & Swärdh, Jan-Erik & Algers, Staffan & Habibi, Shiva & Sedehi Zadeh, Noor, 2019. "Long-term responses to car-tax policies: distributional effects and reduced carbon emissions," Papers 2019:4, Research Programme in Transport Economics.
    2. Habibi, Shiva & Beser Hugosson, Muriel & Sundbergh, Pia & Algers, Staffan, 2016. "Car fleet policy evaluation: the case of a Bonus-Malus system in Sweden," Working papers in Transport Economics 2016:19, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    3. De Borger, Bruno & Mulalic, Ismir & Rouwendal, Jan, 2016. "Measuring the rebound effect with micro data: A first difference approach," Journal of Environmental Economics and Management, Elsevier, vol. 79(C), pages 1-17.
    4. Bhardwaj, Chandan & Axsen, Jonn & Kern, Florian & McCollum, David, 2020. "Why have multiple climate policies for light-duty vehicles? Policy mix rationales, interactions and research gaps," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 309-326.
    5. Seya, Hajime & Nakamichi, Kumiko & Yamagata, Yoshiki, 2016. "The residential parking rent price elasticity of car ownership in Japan," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 123-134.
    6. Bergantino, Angela S. & Intini, Mario & Percoco, Marco, 2021. "New car taxation and its unintended environmental consequences," Transportation Research Part A: Policy and Practice, Elsevier, vol. 148(C), pages 36-48.
    7. Mónica Meireles & Margarita Robaina & Daniel Magueta, 2021. "The Effectiveness of Environmental Taxes in Reducing CO 2 Emissions in Passenger Vehicles: The Case of Mediterranean Countries," IJERPH, MDPI, vol. 18(10), pages 1-13, May.
    8. Ben Clark & Kiron Chatterjee & Steve Melia, 2016. "Changes in level of household car ownership: the role of life events and spatial context," Transportation, Springer, vol. 43(4), pages 565-599, July.
    9. Visaria, Anant Atul & Jensen, Anders Fjendbo & Thorhauge, Mikkel & Mabit, Stefan Eriksen, 2022. "User preferences for EV charging, pricing schemes, and charging infrastructure," Transportation Research Part A: Policy and Practice, Elsevier, vol. 165(C), pages 120-143.
    10. Laviolette, Jérôme & Morency, Catherine & Waygood, E.O.D., 2022. "A kilometer or a mile? Does buffer size matter when it comes to car ownership?," Journal of Transport Geography, Elsevier, vol. 104(C).
    11. Nazari, Fatemeh & Mohammadian, Abolfazl (Kouros), 2023. "Modeling vehicle-miles of travel accounting for latent heterogeneity," Transport Policy, Elsevier, vol. 133(C), pages 45-53.
    12. Jukka Heinonen & Michał Czepkiewicz & Áróra Árnadóttir & Juudit Ottelin, 2021. "Drivers of Car Ownership in a Car-Oriented City: A Mixed-Method Study," Sustainability, MDPI, vol. 13(2), pages 1-26, January.
    13. 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.
    14. Shiang-Min Meng & Li-Jen Liu & Mikhail Kuritsyn & Vladislav Pechnikov, 2019. "Price Determinants on Used Car Auction in Taiwan," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 9(1), pages 48-58, January.
    15. Ali, Azam & Kalatian, Arash & Choudhury, Charisma F., 2023. "Comparing and contrasting choice model and machine learning techniques in the context of vehicle ownership decisions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 173(C).
    16. Konstantakis, Konstantinos N. & Milioti, Christina & Michaelides, Panayotis G., 2017. "Modeling the dynamic response of automobile sales in troubled times: A real-time Vector Autoregressive analysis with causality testing for Greece," Transport Policy, Elsevier, vol. 59(C), pages 75-81.
    17. Clark, Stephen D. & Rey, Sergio, 2017. "Temporal dynamics in local vehicle ownership for Great Britain," Journal of Transport Geography, Elsevier, vol. 62(C), pages 30-37.
    18. Kim, Sung Hoo & Mokhtarian, Patricia L., 2018. "Taste heterogeneity as an alternative form of endogeneity bias: Investigating the attitude-moderated effects of built environment and socio-demographics on vehicle ownership using latent class modelin," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 130-150.
    19. Oda, Hiromu & Noguchi, Hiroki & Fuse, Masaaki, 2022. "Review of life cycle assessment for automobiles: A meta-analysis-based approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    20. Galarraga, Ibon & Kallbekken, Steffen & Silvestri, Alessandro, 2020. "Consumer purchases of energy-efficient cars: How different labelling schemes could affect consumer response to price changes," Energy Policy, Elsevier, vol. 137(C).

    More about this item

    Keywords

    Bonus-malus; CO2 emission policies; Car fleet modeling; Vehicle supply model;
    All these keywords.

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:hhs:ctswps:2015_006. 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: CTS (email available below). General contact details of provider: http://www.cts.kth.se/ .

    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.