Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/287162 
Year of Publication: 
2021
Citation: 
[Journal:] Environmental and Resource Economics [ISSN:] 1573-1502 [Volume:] 80 [Issue:] 1 [Publisher:] Springer Netherlands [Place:] Dordrecht [Year:] 2021 [Pages:] 59-94
Publisher: 
Springer Netherlands, Dordrecht
Abstract: 
Vehicle registrations have been shown to strongly react to tax reforms aimed at reducing CO2 emissions from passengers' cars, but are the effects equally strong for positive and negative tax changes? The literature on asymmetric reactions to price and tax changes has documented asymmetries for everyday goods but has not yet considered durables. We leverage multiple vehicle registration tax (VRT) reforms in Norway and estimate their impact on within car-model substitutions. We estimate stronger effects for cars receiving tax cuts and rebates than for those affected by tax increases. The corresponding estimated elasticity is − 1.99 for VRT decreases and 0.77 for increases. As consumers may also substitute across car models, our estimates represent a lower bound.
Subjects: 
CO2 emissions intensity
New vehicles
Vehicle registration tax
Elasticity
Asymmetric response
Norway
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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