Evaluation of subsidies programs to sell green cars : impact on prices, quantities and efficiency
Jiménez, Juan Luí­s (Universidad de Las Palmas de Gran Canaria. Facultad de Economía, Empresa y Turismo)
Perdiguero, Jordi (Universitat de Barcelona. Departamento de Política Económica)
Garcí­a, Carmen (Universidad de Las Palmas de Gran Canaria)
Xarxa de Referència en Economia Aplicada (XREAP)

Imprint: Xarxa de Referència en Economia Aplicada (XREAP) 2011
Description: 40 p.
Abstract: During the recent period of economic crisis, many countries have introduced scrappage schemes to boost the sale and production of vehicles, particularly of vehicles designed to pollute less. In this paper, we analyze the impact of a particular scheme in Spain (Plan2000E) on vehicle prices and sales figures as well as on the reduction of polluting emissions from vehicles on the road. We considered the introduction of this scheme an exogenous policy change and because we could distinguish a control group (non-subsidized vehicles) and a treatment group (subsidized vehicles), before and after the introduction of the Plan, we were able to carry out our analysis as a quasi-natural experiment. Our study reveals that manufacturers increased vehicle prices by the same amount they were granted through the Plan (1,000 €). In terms of sales, econometric estimations revealed an increase of almost 5% as a result of the implementation of the Plan. With regard to environmental efficiency, we compared the costs (inverted quantity of money) and the benefits of the program (reductions in polluting emissions and additional fiscal revenues) and found that the Plan would only be beneficial if it boosted demand by at least 30%.
Rights: Aquest document està  subjecte a una llicència d'ús de Creative Commons, amb la qual es permet copiar, distribuir i comunicar públicament l'obra sempre que se'n citin l'autor original, la universitat i la xarxa i no se'n faci cap ús comercial ni obra derivada, tal com queda estipulat en la llicència d'ús Creative Commons
Language: Anglès.
Series: Documents de treball de la Xarxa de Referència en Economia Aplicada (XREAP)
Series: XREAP ; 2011-14
Document: workingPaper
Subject: Subsidies ; Automobile sector ; Difference-in-Difference estimator ; Green policies ; Automobile industry and trade ; Indústria automobilística ; Subvencions

Adreça alternativa: http://hdl.handle.net/2072/171792

39 p, 291.1 KB

The record appears in these collections:
Research literature > Studies

 Record created 2012-08-31, last modified 2017-10-21

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