TY  - JOUR
A1  - Ciccone, Alice
A1  - Soldani, Emilia
T1  - Stick or carrot? Asymmetric responses to vehicle registration taxes in Norway
T2  - Environmental and resource economics
N2  - 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.
KW  - CO2 emissions intensity
KW  - New vehicles
KW  - Vehicle registration tax
KW  - Elasticity
KW  - Asymmetric response
KW  - Norway
Y1  - 2021
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/63672
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-636723
SN  - 1573-1502
N1  - 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.
N1  - Open Access funding enabled and organized by Projekt DEAL.
VL  - 80.2021
IS  - 1
SP  - 59
EP  - 94
PB  - Springer Science + Business Media B.V.
CY  - Dordrecht [u.a.]
ER  -