Economics at your fingertips  

The effect of registration taxes on new car sales and emissions: Evidence from Switzerland

Anna Alberini and Markus Bareit

Resource and Energy Economics, 2019, vol. 56, issue C, 96-112

Abstract: In Switzerland, the annual circulation taxes on road vehicles are set by and paid to the cantons (not to the federal government). We exploit the 26 different circulation tax rules and their variation over time, which we interpret as a natural experiment, to see if linking them to a vehicle’s CO2 emissions rate has helped shift new car sales towards lower-emitting vehicles. We find that even when the penalty associated with a highly polluting vehicle is high, the effect is relatively small. For example, in canton Zurich, imposing a 50% “malus” on the annual registration fee for cars that emit 200 or more grams of CO2 per kilometer reduces the average CO2 emissions rate from new cars by only 0.46g per kilometer, bringing it to 158.11g per kilometer in 2011. A similar effect would be attained with a modest increase in fuel taxes. Bonus policies may trigger new car sales and engender a net increase in CO2 emissions.

Keywords: Vehicle demand estimation; Fuel economy; Fuel taxes; Vehicle taxes; Carbon dioxide emissions rates (search for similar items in EconPapers)
JEL-codes: L62 Q4 Q5 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Resource and Energy Economics is currently edited by J. F. Shogren and S. Smulders

More articles in Resource and Energy Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-11-24
Handle: RePEc:eee:resene:v:56:y:2019:i:c:p:96-112