Stick or carrot? Asymmetric responses to vehicle registration taxes in Norway
- Vehicle registrations have been shown to strongly react to tax reforms aimed at reducing CO2 emissions from passengers’ cars, but are the effects equally strong for positive and negative tax changes? The literature on asymmetric reactions to price and tax changes has documented asymmetries for everyday goods but has not yet considered durables. We leverage multiple vehicle registration tax (VRT) reforms in Norway and estimate their impact on within car-model substitutions. We estimate stronger effects for cars receiving tax cuts and rebates than for those affected by tax increases. The corresponding estimated elasticity is − 1.99 for VRT decreases and 0.77 for increases. As consumers may also substitute across car models, our estimates represent a lower bound.
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| Author: | Alice CicconeORCiD, Emilia SoldaniORCiD |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-636723 |
| DOI: | https://doi.org/10.1007/s10640-021-00578-6 |
| ISSN: | 1573-1502 |
| Parent Title (English): | Environmental and resource economics |
| Publisher: | Springer Science + Business Media B.V. |
| Place of publication: | Dordrecht [u.a.] |
| Document Type: | Article |
| Language: | English |
| Date of Publication (online): | 2021/08/05 |
| Date of first Publication: | 2021/08/05 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2022/08/12 |
| Tag: | Asymmetric response; CO2 emissions intensity; Elasticity; New vehicles; Norway; Vehicle registration tax |
| Volume: | 80.2021 |
| Issue: | 1 |
| Page Number: | 36 |
| First Page: | 59 |
| Last Page: | 94 |
| Note: | We gratefully acknowledge the Norwegian Research Council, the Departments of Economic at the University of Oslo and Goethe Universität in Frankfurt, and the Institute of Transport Economics (TØI) for financial support when acquiring the data. |
| Note: | Open Access funding enabled and organized by Projekt DEAL. |
| HeBIS-PPN: | 502662190 |
| Institutes: | Wirtschaftswissenschaften |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 30 Sozialwissenschaften, Soziologie / 300 Sozialwissenschaften |
| 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft | |
| Sammlungen: | Universitätspublikationen |
| Licence (German): |  Creative Commons - Namensnennung 4.0 |
