Trade-offs in CO2-Oriented Vehicle Tax Reforms: A Case Study of Greece
We estimate demand for automobiles in Greece using a discrete choice model of product differentiation and use the model to evaluate carbon-based tax schemes that could shift consumer purchases towards low-CO2 cars and thus lead to the reduction of fuel use and CO2 emissions. We find that careful policy design, supported by appropriate modeling, can bring about substantial environmental benefits without losing control of economic parameters such as public finances or firm profits. This finding comes in contrast to the results of recent vehicle tax reforms in European countries, which turned out to be more costly than initially expected. Our analysis indicates that, especially in countries with already heavy vehicle taxation, improper implementation of carbon-based taxes can have adverse unintended environmental consequences.
|Date of creation:||Jun 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.rcfea.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frank Verboven, 1996. "International Price Discrimination in the European Car Market," RAND Journal of Economics, The RAND Corporation, vol. 27(2), pages 240-268, Summer.
- Fershtman, C. & Gandal, N. & Markovich, S., 1997.
"Estimating the Effect of Tax Reform in Differentiated Product Oligopolistic Markets,"
29-97, Tel Aviv.
- Fershtman, Chaim & Gandal, Neil & Markovich, Sarit, 1999. "Estimating the Effects of Tax Reform in Differentiated Product Oligopolistic Markets," CEPR Discussion Papers 2107, C.E.P.R. Discussion Papers.
- 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.
- Kenneth A. Small & Kurt Van Dender, 2006. "Fuel Efficiency and Motor Vehicle Travel: The Declining Rebound Effect," Working Papers 050603, University of California-Irvine, Department of Economics.
- 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.
- Anderson, Soren & Parry, Ian & Sallee, James M. & Fischer, Carolyn, 2010.
"Automobile Fuel Economy Standards: Impacts, Efficiency, and Alternatives,"
dp-10-45, Resources For the Future.
- 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.
- Soren T. Anderson & Carolyn Fischer & Ian Parry & James M. Sallee, 2010. "Automobile Fuel Economy Standards: Impacts, Efficiency, and Alternatives," NBER Working Papers 16370, National Bureau of Economic Research, Inc.
- Fischer, Carolyn, 2008. "Comparing flexibility mechanisms for fuel economy standards," Energy Policy, Elsevier, vol. 36(8), pages 3106-3114, August.
- Uwe Kunert & Hartmut Kuhfeld, 2006.
"The Diverse Structures of Passenger Car Taxation in Europe and the EU Commissions Proposal for Reform,"
Discussion Papers of DIW Berlin
589, DIW Berlin, German Institute for Economic Research.
- Kunert, Uwe & Kuhfeld, Hartmut, 2007. "The diverse structures of passenger car taxation in Europe and the EU Commissions proposal for reform," Transport Policy, Elsevier, vol. 14(4), pages 306-316, July.
- Greene, David L. & Patterson, Philip D. & Singh, Margaret & Li, Jia, 2005. "Feebates, rebates and gas-guzzler taxes: a study of incentives for increased fuel economy," Energy Policy, Elsevier, vol. 33(6), pages 757-775, April.
- Trajtenberg, Manuel, 1989. "The Welfare Analysis of Product Innovations, with an Application to Computed Tomography Scanners," Journal of Political Economy, University of Chicago Press, vol. 97(2), pages 444-79, April.
- Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
When requesting a correction, please mention this item's handle: RePEc:rim:rimwps:33_12. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dimitrios Vortelinos)
If references are entirely missing, you can add them using this form.