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Driving towards the green light? Economic incentives to reduce carbon dioxide emissions from passenger cars in Sweden

Stjernquist, Annika (2009)
Department of Economics
Abstract
In this thesis four economic incentives to reduce exhaust emissions of carbon dioxide are studied. The incentives are: the carbon dioxide tax, carbon dioxide differentiated vehicle tax, green car cash bonus and old car scrapping bonus. They are analysed and discussed in deeper theory. Where figures and numbers are available these are studied. Economically they are all more or less efficient. The environmental efficiency depends on peoples’ responses to the subsidies. The carbon dioxide tax provides efficiency for the environment in the long run, when demand elasticity for fuels is more elastic. As always caution needs to be taken when subsidies are used. There is a risk that the cash bonus increases the number of cars on the roads instead... (More)
In this thesis four economic incentives to reduce exhaust emissions of carbon dioxide are studied. The incentives are: the carbon dioxide tax, carbon dioxide differentiated vehicle tax, green car cash bonus and old car scrapping bonus. They are analysed and discussed in deeper theory. Where figures and numbers are available these are studied. Economically they are all more or less efficient. The environmental efficiency depends on peoples’ responses to the subsidies. The carbon dioxide tax provides efficiency for the environment in the long run, when demand elasticity for fuels is more elastic. As always caution needs to be taken when subsidies are used. There is a risk that the cash bonus increases the number of cars on the roads instead of just substituting old cars for new ones. A scrapping bonus might make people unwilling to scrap a car whenever a bonus is not present. The main conclusion drawn in the thesis is that the CO2 tax is important as a complement to all the other measures as it works counter productive to the environmentally unfriendly effects the subsidies might have. (Less)
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author
Stjernquist, Annika
supervisor
organization
year
type
M2 - Bachelor Degree
subject
keywords
efficiency, tax, emissions, carbon dioxide, passenger transport, Economics, econometrics, economic theory, economic systems, economic policy, Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik
language
English
id
1436631
date added to LUP
2009-06-13 00:00:00
date last changed
2010-08-03 10:52:31
@misc{1436631,
  abstract     = {In this thesis four economic incentives to reduce exhaust emissions of carbon dioxide are studied. The incentives are: the carbon dioxide tax, carbon dioxide differentiated vehicle tax, green car cash bonus and old car scrapping bonus. They are analysed and discussed in deeper theory. Where figures and numbers are available these are studied. Economically they are all more or less efficient. The environmental efficiency depends on peoples’ responses to the subsidies. The carbon dioxide tax provides efficiency for the environment in the long run, when demand elasticity for fuels is more elastic. As always caution needs to be taken when subsidies are used. There is a risk that the cash bonus increases the number of cars on the roads instead of just substituting old cars for new ones. A scrapping bonus might make people unwilling to scrap a car whenever a bonus is not present. The main conclusion drawn in the thesis is that the CO2 tax is important as a complement to all the other measures as it works counter productive to the environmentally unfriendly effects the subsidies might have.},
  author       = {Stjernquist, Annika},
  keyword      = {efficiency,tax,emissions,carbon dioxide,passenger transport,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {Driving towards the green light? Economic incentives to reduce carbon dioxide emissions from passenger cars in Sweden},
  year         = {2009},
}