Skip to main content
Article
Trade-offs in CO2-Oriented Vehicle Tax Reforms: A Case Study of Greece
Transportation Research Part D: Transport and Environment (2012)
  • Adamos Adamou, University of Cyprus
  • Sofronis Clerides, University of Cyprus
  • Thedoros Zachariadis, Cyprus University of Technology
Abstract

We estimate demand for automobiles in Greece using a model of product differentiation and use the model to evaluate carbon-based tax schemes that could shift consumer purchases towards low CO2 emission cars. We find that careful policy design, supported by appropriate modeling, can bring about substantial environmental benefits without losing control of economic parameters such as public finances or firm profits. This contrasts to the results of recent vehicle tax reforms in European countries, which turned out to be more costly than initially expected.

Keywords
  • automobile market,
  • carbon taxation,
  • emissions,
  • feebates
Publication Date
August, 2012
Citation Information
Adamos Adamou, Sofronis Clerides and Thedoros Zachariadis. "Trade-offs in CO2-Oriented Vehicle Tax Reforms: A Case Study of Greece" Transportation Research Part D: Transport and Environment Vol. 17 Iss. 6 (2012)
Available at: http://works.bepress.com/sofronis_clerides/16/