Environmental, Redistributive and Revenue Effects of Policies Promoting Fuel Efficient and Electric Vehicles
Patrick Bigler and
Doina Maria Radulescu
No 9645, CESifo Working Paper Series from CESifo
Abstract:
We analyze welfare implications of policies promoting environmentally friendly vehicles employing rich Swiss micro-data on 23,000 newly purchased cars and their buyers. Our estimates reveal substantial income heterogeneity in price elasticity and electric vehicle (EV) adoption. While CO2 levies secure road financing revenue, emissions of the new car fleet only slightly decrease. In contrast, subsidies support EV uptake, and lead to a more pronounced emission reduction. Both instruments have redistributive implications. We compute optimal subsidy - fuel tax combinations subject to a pre-specified EV target and to securing road financing in the presence or absence of equity concerns.
Keywords: electric vehicles; mixed logit; welfare; fuel tax; subsidies; CO2 emissions (search for similar items in EconPapers)
JEL-codes: C25 D12 H23 L62 Q48 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-ene, nep-env, nep-eur, nep-pub, nep-tre and nep-ure
References: Add references at CitEc
Citations:
Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp9645.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_9645
Access Statistics for this paper
More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe (wohlrabe@ifo.de).