Designing Carbon Taxation Schemes for Automobiles: A Simulation Exercise for Germany

Adamos Adamou, Sofronis Clerides and Theodoros Zachariadis

No 120047, Climate Change and Sustainable Development from Fondazione Eni Enrico Mattei (FEEM)

Abstract: Vehicle taxation based on CO2 emissions is increasingly being adopted worldwide in order to shift consumer purchases to low-carbon cars, yet little is known about the effectiveness and overall economic impact of these schemes. We focus on feebate schemes, which impose a fee on high-carbon vehicles and give a rebate to purchasers of low-carbon automobiles. e estimate a discrete choice model of demand for automobiles in Germany and simulate the impact of alternative feebate schemes on emissions, consumer welfare, public revenues and firm profits. The analysis shows that a well-designed scheme can lead to emission reductions without reducing overall welfare.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 38
Date: 2011-12
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https://ageconsearch.umn.edu/record/120047/files/NDL2011-096.pdf (application/pdf)

Related works:
Working Paper: Designing Carbon Taxation Schemes for Automobiles: A Simulation Exercise for Germany (2012)
Working Paper: Designing Carbon Taxation Schemes for Automobiles: A Simulation Exercise for Germany (2012)
Working Paper: Designing Carbon Taxation Schemes for Automobiles: A Simulation Exercise for Germany (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:feemcl:120047

DOI: 10.22004/ag.econ.120047

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