Measures to Promote Green Cars: Evaluation at the car variant level

Taiju Kitano

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: Automobile firms commonly offer multiple variants for each of their car models. Heterogeneity at the variant level is an important element to be considered when assessing attribute-based policy interventions, such as tax incentives and subsidy for green cars, because of substantial variant-level heterogeneity in the attributes within a model. This paper presents a discrete choice model of product differentiation at the variant level, and estimates the structural parameters of the econometric model using data at different levels of aggregation: model-level sales and variant-level prices and attributes. Using these estimates, this paper examines the policies to promote green cars in Japan.

Pages: 21 pages
Date: 2016-06
New Economics Papers: this item is included in nep-dcm, nep-env, nep-sog and nep-tre
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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:16075

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