Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

GASOLINE PRICES, GOVERNMENT SUPPORT, AND THE DEMAND FOR HYBRID VEHICLES IN THE UNITED STATES *

GASOLINE PRICES, GOVERNMENT SUPPORT, AND THE DEMAND FOR HYBRID VEHICLES IN THE UNITED STATES * We analyze the determinants of hybrid vehicle demand, focusing on gasoline prices and income tax incentives. We find that hybrid vehicle sales in 2006 would have been 37% lower had gasoline prices stayed at the 1999 levels, and the effect of the federal income tax credit program is estimated at 20% in 2006. Under the program, the cost of reducing gasoline consumption was $75 per barrel in government revenue and that of CO2 emission reduction was $177 per ton. We show that the cost effectiveness of federal tax programs can be improved by a flat rebate scheme. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Economic Review Wiley

GASOLINE PRICES, GOVERNMENT SUPPORT, AND THE DEMAND FOR HYBRID VEHICLES IN THE UNITED STATES *

Loading next page...
 
/lp/wiley/gasoline-prices-government-support-and-the-demand-for-hybrid-vehicles-gNm6szg1yp

References (28)

Publisher
Wiley
Copyright
© (2011) by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association
ISSN
0020-6598
eISSN
1468-2354
DOI
10.1111/j.1468-2354.2010.00623.x
Publisher site
See Article on Publisher Site

Abstract

We analyze the determinants of hybrid vehicle demand, focusing on gasoline prices and income tax incentives. We find that hybrid vehicle sales in 2006 would have been 37% lower had gasoline prices stayed at the 1999 levels, and the effect of the federal income tax credit program is estimated at 20% in 2006. Under the program, the cost of reducing gasoline consumption was $75 per barrel in government revenue and that of CO2 emission reduction was $177 per ton. We show that the cost effectiveness of federal tax programs can be improved by a flat rebate scheme.

Journal

International Economic ReviewWiley

Published: Feb 1, 2011

There are no references for this article.