Can Green Car Taxes Restore Efficiency? Evidence from the Japanese New Car Market

Konishi, Yoshifumi; Zhao, Meng

doi:10.1086/689701

Cited by 18 publications

(9 citation statements)

References 36 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…more kilometres per car). Konishi and Meng (2014) show that in a green tax reform in Japan, this scale effect offset the composition effect (i.e. a bigger share of fuel-efficient cars) by approximately two third.…”

Section: Discussionmentioning

confidence: 91%

Fiscal Policy and $$\hbox {CO}_{2}$$ CO 2 Emissions of New Passenger Cars in the EU

Gerlagh

Bijgaart

Nijland

et al. 2016

Environ Resource Econ

View full text Add to dashboard Cite

To what extent have national fiscal policies contributed to the decarbonisation of newly sold passenger cars? We construct a simple model that generates predictions regarding the effect of fiscal policies on average CO 2 emissions of new cars, and then test the model empirically. Our empirical strategy combines a diverse series of data. First, we use a large database of vehicle-specific taxes in 15 EU countries over 2001-2010 to construct a measure for the vehicle registration and annual road tax levels, and separately, for the CO 2 sensitivity of these taxes. We find that for many countries the fiscal policies have become more sensitive to CO 2 emissions of new cars. We then use these constructed measures to estimate the effect of fiscal policies on the CO 2 emissions of the new car fleet. The increased CO 2 -sensitivity of registration taxes have reduced the CO 2 emission intensity of the average new car by 1.3 %, partly through an induced increase of the share of diesel-fuelled cars by 6.5 percentage points. Higher fuel taxes lead to the purchase of more fuel efficient cars, but higher diesel fuel taxes also decrease the share of (more fuel efficient) diesel cars; higher annual road taxes have no or an adverse effect.Keywords Vehicle registration taxes · Fuel taxes · CO 2 emissions JEL Classification H30 · L62 · Q48 · Q54 · Q58 · R48 B Reyer Gerlagh r.gerlagh@uvt.nl

show abstract

Section: Discussionmentioning

confidence: 91%

Fiscal Policy and $$\hbox {CO}_{2}$$ CO 2 Emissions of New Passenger Cars in the EU

Gerlagh

Bijgaart

Nijland

et al. 2016

Environ Resource Econ

View full text Add to dashboard Cite

show abstract

“…The fleet size effect is positive because the feebate increased the total sales of cars by 13% compared to the no-feebate counterfactual, meaning there are now additional cars on the road emitting CO2. The manufacturing effect is positive because the production of additional vehicles is associated with CO2 emissions, 11 which is only partly offset by the fact that feebate-induced vehicles are smaller than the ones that would have been produced otherwise. The resulting net effect of the feebate is a reduction in CO2 emissions of 4.8 million tonnes, which suggests that the feebate did indeed achieve its goal of reducing carbon emissions.…”

Section: Climate Costsmentioning

confidence: 99%

Are environmental tax policies beneficial?

Teusch

Braathen

2019

OECD Environment Working Papers

View full text Add to dashboard Cite

show abstract

“…They find that the eco‐car subsidy increased car sales by 21.5 percent. Konishi and Zhao () use a sophisticated random‐coefficient logit model to approximate demands for car models, and then estimate policy‐induced changes in vehicle sales and CO 2 emissions. Although the program significantly raised the average fuel efficiency and total car sales, the reduction in CO 2 emissions was small.…”

Section: Literature Reviewmentioning

confidence: 99%

Korea's Cash‐for‐Clunkers Program: Household‐Level Evidence

Min

2015

Asian Economic Journal

View full text Add to dashboard Cite

This paper examines the effects of a vehicle subsidy program introduced in Korea in the wake of the 2008 global recession. I adopt a simple binary choice model to approximate a household's decision to purchase a new car and identify the policy effect using a difference-in-difference framework in which non-eligible households serve as the control group. The estimation results are as follows. First, the subsidy program significantly boosted the overall demand for new vehicles, increasing the average probability of a new purchase by eligible households from 7.1 to 13.9 percent. Second, beneficiaries of the subsidy program were mostly rich households and those owning relatively new cars. Finally, the program effect on aggregate vehicle sales was not quickly reversed in contrast to recent evidence on the comparable US program.

show abstract

Can Green Car Taxes Restore Efficiency? Evidence from the Japanese New Car Market

Cited by 18 publications

References 36 publications

Fiscal Policy and $$\hbox {CO}_{2}$$ CO 2 Emissions of New Passenger Cars in the EU

Fiscal Policy and $$\hbox {CO}_{2}$$ CO 2 Emissions of New Passenger Cars in the EU

Are environmental tax policies beneficial?

Korea's Cash‐for‐Clunkers Program: Household‐Level Evidence

Contact Info

Product

Resources

About