Disentangling sources of vehicle emissions reduction in France: 2003–2008

D’Haultfœuille, Xavier, Isis Durrmeyer and Philippe Février
Authors registered in the RePEc Author Service: Xavier D'Haultfoeuille

International Journal of Industrial Organization, 2016, vol. 47, issue C, 186-229

Abstract: We analyze the evolution of CO2 emissions of new vehicles sold in France between 2003 and 2008. We investigate in particular the effect of two policies introduced during that time: the energy label requirement, which went into effect in the end of 2005, and a feebate based on CO2 emissions of new vehicles in 2008. We estimate a flexible model of demand for automobiles that incorporates consumers’ heterogeneity and valuation of vehicle CO2 emissions. Our results show that there has been a shift in preferences towards low-emitting cars. Moreover, the timing of these changes is consistent with the introduction of the two policies. This suggests that the feebate had a crowding-in effect in addition to its price effect. Overall, the change in preferences accounts for 40% of the overall decrease in average CO2 emissions of new cars in the period.

Keywords: Environmental policy; Consumer preferences; CO2 emissions; Automobiles (search for similar items in EconPapers)
JEL-codes: D12 H23 L62 Q51 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:47:y:2016:i:c:p:186-229

DOI: 10.1016/j.ijindorg.2016.05.002

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