Designing Carbon Taxation Schemes for Automobiles: A Simulation Exercise for Germany

Vehicle taxation based on CO2 emissions is increasingly being adopted worldwide in order to shift consumer purchases to low-carbon cars, yet little is known about the effectiveness and overall economic impact of these schemes. We focus on feebate schemes, which impose a fee on high-carbon vehicles and give a rebate to purchasers of low-carbon automobiles. e estimate a discrete choice model of demand for automobiles in Germany and simulate the impact of alternative feebate schemes on emissions, consumer welfare, public revenues and firm profits. The analysis shows that a well-designed scheme can lead to emission reductions without reducing overall welfare.


Issue Date:
2011-12
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/120047
Total Pages:
38
JEL Codes:
Q5; Q53; Q58
Series Statement:
CCSD
96.2011




 Record created 2017-04-01, last modified 2017-08-26

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