Environmental, Redistributive and Revenue Effects of Policies Promoting Fuel Efficient and Electric Vehicles

Arbeitspapier

We analyze welfare implications of policies promoting environmentally friendly vehicles employing rich Swiss micro-data on 23,000 newly purchased cars and their buyers. Our estimates reveal substantial income heterogeneity in price elasticity and electric vehicle (EV) adoption. While CO2 levies secure road financing revenue, emissions of the new car fleet only slightly decrease. In contrast, subsidies support EV uptake, and lead to a more pronounced emission reduction. Both instruments have redistributive implications. We compute optimal subsidy - fuel tax combinations subject to a pre-specified EV target and to securing road financing in the presence or absence of equity concerns.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 9645

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities ; Consumer Economics: Empirical Analysis ; Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies ; Automobiles; Other Transportation Equipment; Related Parts and Equipment ; Energy: Government Policy
• Subject: electric vehicles ; mixed logit ; welfare ; fuel tax ; subsidies ; CO2 emissions

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bigler, Patrick ; Radulescu, Doina Maria
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/260775
• Last update: 10.03.2025, 11:46 AM CET