Abstract

http://ssrn.com/abstract=1348808
 
 

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Green Drivers or Free Riders? An Analysis of Tax Rebates for Hybrid Vehicles


Ambarish Chandra


University of Toronto - Rotman School of Management

Sumeet Gulati


University of British Columbia - Food and Resource Economics

Milind Kandlikar


affiliation not provided to SSRN

January 20, 2010

Journal of Environmental Economics and Management, Vol. 60, No. 2, 2010

Abstract:     
We estimate the effect of tax rebates offered by Canadian Provinces on the sales of Hybrid Electric Vehicles. We find that these rebates had a large and positive effect on the market share of hybrid vehicles and that Intermediate cars, Intermediate SUVs and some high performance compact cars were crowded out as a result. However, only 26% of the hybrid vehicles sold during the rebate programs can be attributed to the rebate. This implies that the rebate programs subsidized some consumers who would have either bought hybrid vehicles or other fuel-efficient vehicles in any case.

Consequently, the average cost of reducing carbon emissions from these programs is estimated to be $195 per tonne.

Number of Pages in PDF File: 45

Keywords: Tax Rebates, Hybrid Vehicles, Program Evaluation

JEL Classification: Q52, Q54, Q58

Accepted Paper Series


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Date posted: February 26, 2009 ; Last revised: September 25, 2010

Suggested Citation

Chandra, Ambarish and Gulati, Sumeet and Kandlikar, Milind, Green Drivers or Free Riders? An Analysis of Tax Rebates for Hybrid Vehicles (January 20, 2010). Journal of Environmental Economics and Management, Vol. 60, No. 2, 2010. Available at SSRN: http://ssrn.com/abstract=1348808

Contact Information

Ambarish Chandra (Contact Author)
University of Toronto - Rotman School of Management ( email )
105 St. George Street
Toronto, Ontario M5S 3E6
Canada
Sumeet Gulati
University of British Columbia - Food and Resource Economics ( email )
2329 West Mall
Vancouver, British Columbia BC V6T 1Z4
Canada
+1 604-822-2144 (Phone)
+1 604-822-2184 (Fax)
HOME PAGE: http://www.landfood.ubc.ca/people/sumeet.gulati/
Milind Kandlikar
affiliation not provided to SSRN ( email )
Feedback to SSRN


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