Date of This Version
January 2012
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.
Recommended Citation
Adamou, Adamos; Clerides, Sofronis; and Zachariadis, Theodoros, "Designing Carbon Taxation Schemes for Automobiles: A Simulation Exercise for Germany" (January 31, 2012). Fondazione Eni Enrico Mattei Working Papers. Paper 647.
https://services.bepress.com/feem/paper647