Car ownership and use taxes as pollution correcting instruments

Stefan Lindhard Mabit, Ismir Mulalic

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    Abstract

    There have been many attempts to alter the taxation of private vehicles to obtain more energy-efficient car transport. The last significant reform in Denmark was completed in 2007. The most important objective was to improve fuel efficiency and consequently to reduce emissions related to car transport. To analyse the effects of such a reform it is necessary to model both long term decision like car ownership and short term decision like car usage in a combined framework. The purpose of this paper is to study to what extent Danish households change their car ownership and their car use after a change in car taxes. Based on a simple theoretical framework we use a large sample of detailed Danish data to estimate the joint demand for vehicles and kilometres. The empirical results point at effects that have important implications.
    Original languageEnglish
    Publication date2013
    Number of pages1
    Publication statusPublished - 2013
    EventStrategisk forskning i transport og infrastruktur - Danmarks Tekniske Universitet, Kongens Lyngby, Denmark
    Duration: 11 Jun 201312 Jun 2013
    http://wwwx.dtu.dk/Sites/strategisk_transportforskning2013.aspx

    Conference

    ConferenceStrategisk forskning i transport og infrastruktur
    LocationDanmarks Tekniske Universitet
    Country/TerritoryDenmark
    CityKongens Lyngby
    Period11/06/201312/06/2013
    Internet address

    Keywords

    • car market
    • car ownership
    • car use
    • car taxation
    • fuel efficiency

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