Consumer Valuation of Fuel Costs and Tax Policy: Evidence from the European Car Market

• 成果类型: Article
• 署名作者: Grigolon, Laura; Reynaert, Mathias; Verboven, Frank
• 署名单位: McMaster University; Universite de Toulouse; Universite Toulouse 1 Capitole; Toulouse School of Economics; KU Leuven; Centre for Economic Policy Research - UK
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20160078
• 发表日期: 2018
• 页码: 193-225
• 关键词: gasoline prices; energy paradox; economy evidence; EFFICIENCY; demand; US; Heterogeneity; STANDARDS; emissions; pollution

摘要

To what extent do car buyers undervalue future fuel costs, and what does this imply for tax policy? To address both questions, we show it is crucial to account for consumer mileage heterogeneity. We use product-level data for a panel of European countries and exploit fuel cost variation by engine. Despite a modest undervaluation of fuel costs, fuel taxes are more effective in reducing fuel usage than product taxes. They also perform better in terms of welfare, even when usage demand is held fixed. The reason is that fuel taxes better target high mileage consumers to purchase fuel efficient cars. (JEL D12, H25, H31, L62, L71)