Green Drivers or Free Riders? An Analysis of Tax Rebates for Hybrid Vehicles
45 Pages Posted: 26 Feb 2009 Last revised: 25 Sep 2010
Date Written: January 20, 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.
Keywords: Tax Rebates, Hybrid Vehicles, Program Evaluation
JEL Classification: Q52, Q54, Q58
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Giving Green to Get Green: Incentives and Consumer Adoption of Hybrid Vehicle Technology
-
Gasoline Prices, Government Support, and the Demand for Hybrid Vehicles in the U.S.
By Arie Beresteanu and Shanjun Li
-
By Sharon Shewmake and Lovell S. Jarvis
-
Using Non-Pecuniary Strategies to Influence Behavior: Evidence from a Large Scale Field Experiment
By Paul J. Ferraro and Michael K. Price
-
By Maria Bockarjova, Piet Rietveld(deceased), ...
-
Do Public Subsidies Sell Green Cars? Evidence from the U.S. 'Cash for Clunkers' Program
By Edward Huang
-
By Corrado Di Maria, Susana Ferreira, ...