The Effects of Cash for Clunkers on Local Air Quality

Ines Helm, Nicolas Koch () and Alexander Rohlf ()
Additional contact information
Nicolas Koch: Mercator Research Institute on Global Commons and Climate Change (MCC)
Alexander Rohlf: Mercator Research Institute on Global Commons and Climate Change (MCC)

No 16266, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study the effects of a large car scrappage scheme in Germany on new car purchases and local air quality by combining vehicle registration data with data on local air pollutant emissions. For identification we exploit cross-sectional variation across districts in the number of cars eligible for scrappage. The scheme had substantial effects on car purchases and did not simply reallocate demand across time in the short-term. Nevertheless, about half of all subsidized buyers benefited from windfall gains. The renewal of the car stock improved local air quality suggesting substantial mortality benefits that likely exceed the cost of the policy. While policy take-up is somewhat smaller in urban districts, improvements in air quality and health tend to be larger due to a higher car density.

Keywords: car scrappage schemes; local air quality; cash for clunkers; emissions; car rebate (search for similar items in EconPapers)
JEL-codes: H20 H23 Q53 Q58 (search for similar items in EconPapers)
Pages: 63 pages
Date: 2023-06
New Economics Papers: this item is included in nep-ene, nep-env, nep-eur, nep-hea, nep-res, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - published in: Journal of Urban Economics, 2023, 138, 103576

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Related works:
Journal Article: The effects of cash for clunkers on local air quality (2023)
Working Paper: The Effects of Cash for Clunkers on Local Air Quality (2023)
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