Assessment of CO2-Oriented Vehicle Tax Reforms: A Case Study of Greece
Vehicle taxation based on a car’s CO2 emission levels is increasingly adopted in countries around the world. This paper describes a model of oligopolistic competition in markets with differentiated products, simulating automobile demand and supply under alternative tax regimes. The objective is to perform simulations in order to evaluate policies that could shift consumer purchases towards low-CO2 cars and thus lead to the reduction of fuel use and CO2 emissions. Focusing on an analysis of the car market of Greece, we assess the environmental and economic implications of alternative carbon-based tax schemes. Our findings, which are relevant for other European countries as well, illustrate that careful policy design, supported by an appropriate model, can bring about substantial environmental benefits without losing control of economic parameters such as public finances or firm profits. In some cases vehicle taxation can have adverse (though unintended) environmental consequences.
|Date of creation:||Mar 2012|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.ucy.ac.cy/econ/en|
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.:
- Kunert, Uwe & Kuhfeld, Hartmut, 2007.
"The diverse structures of passenger car taxation in Europe and the EU Commissions proposal for reform,"
Elsevier, vol. 14(4), pages 306-316, July.
- 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.
- Kenneth A. Small & Kurt Van Dender, 2006.
"Fuel Efficiency and Motor Vehicle Travel: The Declining Rebound Effect,"
050603, University of California-Irvine, Department of Economics.
- 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.
- Fischer, Carolyn, 2008. "Comparing flexibility mechanisms for fuel economy standards," Energy Policy, Elsevier, vol. 36(8), pages 3106-3114, August.
- 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.
- 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.
- 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.
- Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
- 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.
- Fershtman, C. & Gandal, N. & Markovich, S., 1997. "Estimating the Effect of Tax Reform in Differentiated Product Oligopolistic Markets," Papers 29-97, Tel Aviv.
- 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.
- Anderson, Soren & Parry, Ian & Sallee, James M. & Fischer, Carolyn, 2010. "Automobile Fuel Economy Standards: Impacts, Efficiency, and Alternatives," Discussion Papers dp-10-45, Resources For the Future.
- 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.
- 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.
When requesting a correction, please mention this item's handle: RePEc:ucy:cypeua:04-2012. 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: ()
If references are entirely missing, you can add them using this form.