Explaining the Adoption of Diesel Fuel Passenger Cars in Europe

Joshua Linn

RFF Working Paper Series from Resources for the Future

Abstract: Compared with gasoline engines, diesel fuel engines significantly reduce fuel consumption and greenhouse gas emissions from passenger vehicles, but they emit more nitrogen oxides and other pollutants. Across countries, the market share of diesel fuel engines in passenger vehicles varies from close to zero to more than 80 percent. After specifying and estimating the parameters of a model of vehicle markets spanning seven European countries, I show that vehicle taxes and demand for fuel economy, rather than fuel prices or the set of vehicles in the market, explain adoption. The model is used to compare the environmental implications of fuel taxes and carbon dioxide emissions rate standards.

Keywords: vehicle demand estimation; demand for fuel economy and performance; fuel taxes; vehicle taxes; carbon dioxide emissions ratesCreation-Date: 2015-08-17 (search for similar items in EconPapers)
JEL-codes: L62 Q4 Q5 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene, nep-env, nep-ger, nep-res and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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