Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
959291 | Journal of Environmental Economics and Management | 2010 | 16 Pages |
Abstract
We estimate the effect of tax rebates offered by Canadian Provinces on the sales of hybrid electric vehicles. We find that these rebates led to a large increase in the market share of hybrid vehicles. In particular, we estimate that 26% of the hybrid vehicles sold during the rebate programs can be attributed to the rebate, and that intermediate cars, intermediate SUVs and some high performance compact cars were crowded out as a result. However, this implies that the rebate programs also subsidized many consumers who would have bought either 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.
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Authors
Ambarish Chandra, Sumeet Gulati, Milind Kandlikar,