The impact of scrappage programmes on the demand for new vehicles: Evidence from Spain

Research output: Contribution to journalJournal article – Annual report year: 2018Researchpeer-review

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We evaluate the impact of the Spanish car scrappage programme introduced in May 2009 on short-run car purchases. The scrappage programme was simultaneously discussed and implemented and was therefore exogenous to the consumers. We analyse the effect of this programme on household new car purchase decision and household expenditures. The results show that the scrappage programme increased the probability of buying a new car but decreased the mean expenditure devoted to the purchase of this new vehicle. We also evaluate the effect of financial aid on household welfare. Our best estimate of the welfare gain related to the scrappage programme is very similar to the aid of €1000 offered by the public administrations.

Original languageEnglish
JournalResearch in Transportation Economics
Pages (from-to)83-96
Publication statusPublished - 1 Jan 2018
CitationsWeb of Science® Times Cited: No match on DOI

    Research areas

  • AIDS model, Car demand, Cash for clunkers, Economic crisis, H20, Household behaviour, Public subsidies, R21, Scrappage programme

ID: 162457612