Vehicle type choice under the influence of a tax reform and rising fuel prices

Mabit, Stefan Lindhard

doi:10.1016/j.tra.2014.03.004

Cited by 41 publications

(32 citation statements)

References 18 publications

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“…In several countries, the incentives take the form of one-off excise taxes on the purchase of new vehicles (Brand et al, 2013), with the tax rate positive and high for high emitters and low (or even negative) for low emitters, as in France (Klier and Linn, 2015; D'Haltfoueiulle et al, 2014), Finland (Stitzing, 2015), Sweden (Huse and Lucinda, 2013;Klier and Linn, 2015), the Netherlands (Kok, 2015), Denmark (Mabit, 2014) and/or an annual registration fee (also termed circulation tax 2 ) linked to the CO 2 emissions rates of the vehicle, as in the UK, Germany, and Sweden (Cerruti et al, 2015;Klier and Linn, 2015;Kok, 2015). In principle, all of these fees can be structured as feebates, where the revenues from imposing taxes on high emitters are used to finance refunds to low emitters (Anderson et al, 2011).…”

Section: Introductionmentioning

confidence: 99%

“…Assessments of the impacts of such taxes or subsidies usually rely on discrete choice models of car purchases based on individual-level data (e.g., Mabit, 2014), models of shares of vehicles sold as a function of vehicle characteristics (including price, fuel costs, and others) 2 In this paper, we use the terms registration fee and circulation tax interchangeably. It is understood that either would be paid on an annual basis.…”

Section: Introductionmentioning

confidence: 99%

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The effect of registration taxes on new car sales and emissions: Evidence from Switzerland

Alberini

Bareit

2019

Resource and Energy Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract. In Switzerland, the annual circulation taxes on road vehicles are set by and paid to the cantons (not to the federal government). We exploit the 26 different circulation tax rules and their variation over time, which we interpret as a natural experiment, to see if linking them to a vehicle's CO 2 emissions rate has helped shift new car sales towards lower-emitting vehicles. We find that even when the penalty associated with a highly polluting vehicle is high, the effect is relatively small. For example, in canton Zurich, imposing a 50% "malus" on the annual registration fee for cars that emit 200 or more grams of CO 2 per kilometer reduces the average CO 2 emissions rate from new cars by only 0.46 gram per kilometer, bringing it to 158.11 grams per kilometer in 2011. A similar effect would be attained with a modest increase in fuel taxes. Terms of use: Documents in EconStor may

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The effect of registration taxes on new car sales and emissions: Evidence from Switzerland

Alberini

Bareit

2019

Resource and Energy Economics

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“…Train and Winston (2007) estimates a mixed logit model for vehicle choice, which handles unobserved heterogeneity and correlation at an aggregate level, yet not accounting for the same issues related to, and typically propagated from, a more disaggregate level of choice. Mabit (2014) also estimates a mixed logit model for vehicle choice and includes the measure of the size. This paper makes several contributions to the literature.…”

Section: Introductionmentioning

confidence: 99%

An empirical study on aggregation of alternatives and its influence on prediction in car type choice models

2017

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Assessing and predicting car type choices are important for policy analysis. Car type choice models are often based on aggregate alternatives. This is due to the fact that analysts typically do not observe choices at the detailed level that they are made. In this paper, we use registry data of all new car purchases in Sweden for two years where cars are observed by their brand, model and fuel type. However, the choices are made at a more detailed level. Hence, an aggregate (observed) alternative can correspond to several disaggregate (detailed) alternatives. We present an extensive empirical study analyzing estimation results, in-sample and out-of-sample fit as well as prediction performance of five model specifications. These models use different aggregation methods from the literature. We propose a specification of a two-level nested logit model that captures correlation between aggregate and disaggregate alternatives. The nest specific scale parameters are defined as parameterized exponential functions to keep the number of parameters reasonable. The results show that the in-sample and out-of-sample fit as well as the prediction performance differ. The best model accounts for the heterogeneity over disaggregate alternatives as well as the correlation between both disaggregate and aggregate alternatives. It outperforms the commonly used aggregation method of simply including a size measure.

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“…The use of alternative fuel technologies were also associated with consumers' purchase decisions (KPMG International, 2014). Other previous works (Potoglou, 2008;Potoglou and Kanaroglou, 2008b;Bhat et al, 2009;Dagsvik and Liu, 2009;Qian and Soopramanien, 2011;Hess et al, 2012;Hackbarth and Madlener, 2013;Mabit, 2014;Liu et al, 2014;Nayum and Klöckner, 2014;Tanaka et al, 2014;Xu et al, 2015) also demonstrated that fuel efficiency and rising fuel prices had an effect on consumers' vehicle choice as well as technological development and tax reforms. Apart from these key factors, the level of carbon emissions also had a significant impact on the buyers' decision (Nayum et al, 2013).…”

Section: Literature Reviewmentioning

confidence: 76%

Factors influencing consumers’ light commercial vehicle purchase intention in a developing country

Çelik

Oktay

Muhsin

et al. 2015

Management &Amp; Marketing

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Vehicle type choice under the influence of a tax reform and rising fuel prices

Cited by 41 publications

References 18 publications

The effect of registration taxes on new car sales and emissions: Evidence from Switzerland

The effect of registration taxes on new car sales and emissions: Evidence from Switzerland

An empirical study on aggregation of alternatives and its influence on prediction in car type choice models

Factors influencing consumers’ light commercial vehicle purchase intention in a developing country

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