Are Consumers Abandoning Diesel Automobiles because of Contrasting Diesel Policies? Evidence from the Korean Automobile Market

Sunbin Yoo (), Kyung Woong Koh and Yoshikuni Yoshida

MPRA Paper from University Library of Munich, Germany

Abstract: We investigate whether the contrasting set of transportation policies in Korea---reductions in fuel taxes and increases in diesel automobile prices---has decreased emissions. Using a random-coefficient discrete choice model and hypothetical policy sets, we estimate the automobile demand of consumers, the market share of cars by fuel type, and total emissions, assuming that consumer preferences for driving costs change over time. Then, we separately analyze the effect of each policy set on automobile sales and emissions, particularly carbon dioxide, nitrogen oxide, and particulate matter. Our analyses reveal that Korean consumers have become more sensitive toward fuel costs over time and that the emission consequences of Korean policies depend on consumer preferences.

Keywords: Discrete Choice; Demand Estimation; Emissions; Transportation; Fuel Cost (search for similar items in EconPapers)
JEL-codes: D1 D12 R4 R41 (search for similar items in EconPapers)
Date: 2020-10
New Economics Papers: this item is included in nep-dcm, nep-ene, nep-env, nep-reg, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Are consumers abandoning diesel automobiles because of contrasting diesel policies? Evidence from the Korean automobile market (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:103311

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