Carbon Taxes and the Composition of New Passenger Car Sales in Europe

Orkhan Nadirov, Jana Vychytilova () and Bruce Dehning
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Bruce Dehning: Faculty of Management and Economics, Tomas Bata University in Zlin, Mostní 5139, 760 01 Zlín, Czech Republic

Energies, 2020, vol. 13, issue 18, 1-15

Abstract: This paper examines the effectiveness of implementing carbon taxes to reduce carbon dioxide emissions from transport. Using the system Generalized Method of Moments estimator, we utilize cross-country analysis for the first time to study the impact of carbon taxes on the composition of petrol versus diesel passenger cars sold in 17 countries over the period 2013–2017. The results suggest that increasing carbon taxes affects consumer behavior, causing a significant shift from petrol to diesel fuel vehicles, controlling for factors such as the price of passenger cars, fuel price, interest rates, income level, population density, inflation, and vehicle stock.

Keywords: new passenger car sales; carbon tax; climate policy; automobile industry; socioeconomic factors; GMM (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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