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Do tax incentives affect households' adoption of 'green' cars? : A panel study of the Stockholm congestion tax

Mannberg, Andrea; Jansson, Johan LU ; Pettersson, Thomas; Brännlund, Runar and Lindgren, Urban (2014) In Energy Policy 74. p.286-299
Abstract
Policymakers have made several attempts to introduce local and national policies to reduce CO2 emissions and stimulate the consumer adoption of alternative fuel vehicles (ethanol/E85 cars). The purpose of this paper is to analyze how a local policy measure impacts the composition of the car fleet over time. More specifically, we take advantage of the natural experiment setting caused by the introduction of the Stockholm congestion tax (2006) to analyze how the tax affected purchases of ethanol cars that were exempted from the tax. To estimate effects, we employ a Difference-in-differences methodology. By using a comprehensive database of the car fleet and car owners, sociodemographic and geographic factors are analyzed, which is unique in... (More)
Policymakers have made several attempts to introduce local and national policies to reduce CO2 emissions and stimulate the consumer adoption of alternative fuel vehicles (ethanol/E85 cars). The purpose of this paper is to analyze how a local policy measure impacts the composition of the car fleet over time. More specifically, we take advantage of the natural experiment setting caused by the introduction of the Stockholm congestion tax (2006) to analyze how the tax affected purchases of ethanol cars that were exempted from the tax. To estimate effects, we employ a Difference-in-differences methodology. By using a comprehensive database of the car fleet and car owners, sociodemographic and geographic factors are analyzed, which is unique in the existing literature. Our results suggest that the congestion tax had a significant impact on ethanol car purchases although the effect fades away over time. Furthermore, there is a positive relationship between the level of education and ethanol car purchases. Previous adoption of an ethanol car is found to be the strongest predictor of ethanol car purchases. Finally, data indicate that Stockholmers substantially increased purchases of ethanol cars half a year before the introduction of the congestion tax, which we refer to as an anticipation effect.

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author
publishing date
type
Contribution to journal
publication status
published
subject
keywords
ethanol cars, congestion tax, natural experiment
in
Energy Policy
volume
74
pages
14 pages
publisher
Elsevier
external identifiers
  • scopus:84923003598
ISSN
1873-6777
DOI
10.1016/j.enpol.2014.08.029
language
English
LU publication?
no
id
dcd19766-6a55-4111-b571-ec2fde9405b3
date added to LUP
2017-01-12 15:17:04
date last changed
2017-05-28 04:56:28
@article{dcd19766-6a55-4111-b571-ec2fde9405b3,
  abstract     = {Policymakers have made several attempts to introduce local and national policies to reduce CO2 emissions and stimulate the consumer adoption of alternative fuel vehicles (ethanol/E85 cars). The purpose of this paper is to analyze how a local policy measure impacts the composition of the car fleet over time. More specifically, we take advantage of the natural experiment setting caused by the introduction of the Stockholm congestion tax (2006) to analyze how the tax affected purchases of ethanol cars that were exempted from the tax. To estimate effects, we employ a Difference-in-differences methodology. By using a comprehensive database of the car fleet and car owners, sociodemographic and geographic factors are analyzed, which is unique in the existing literature. Our results suggest that the congestion tax had a significant impact on ethanol car purchases although the effect fades away over time. Furthermore, there is a positive relationship between the level of education and ethanol car purchases. Previous adoption of an ethanol car is found to be the strongest predictor of ethanol car purchases. Finally, data indicate that Stockholmers substantially increased purchases of ethanol cars half a year before the introduction of the congestion tax, which we refer to as an anticipation effect.<br/><br/>},
  author       = {Mannberg, Andrea and Jansson, Johan and Pettersson, Thomas and Brännlund, Runar and Lindgren, Urban},
  issn         = {1873-6777},
  keyword      = {ethanol cars,congestion tax,natural experiment},
  language     = {eng},
  pages        = {286--299},
  publisher    = {Elsevier},
  series       = {Energy Policy},
  title        = {Do tax incentives affect households' adoption of 'green' cars? : A panel study of the Stockholm congestion tax},
  url          = {http://dx.doi.org/10.1016/j.enpol.2014.08.029},
  volume       = {74},
  year         = {2014},
}