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| Author: | Chandra, A. Gulati, S. Kandlikar, M. |
| Title: | Green drivers or free riders? An analysis of tax rebates for hybrid vehicles |
| Journal: | Journal of Environmental Economics and Management
2010 : SEP, VOL. 60:2, p. 78-93 |
| Index terms: | tax allowances energy efficiency pollution control sustainable development |
| Language: | eng |
| Abstract: | We estimate the impact of tax rebates executed by Canadian Provinces on the sales of hybrid electric vehicles. The findings show that the rebates led to a large increase in the market share of hybrid vehicles. We estimate that 26% of the hybrid vehicle sales during the rebate programs can be attributed to the rebate, and that intermediate cars, intermediate SUVs and some high performance compact cars were displaced as a result. However, the rebate programs also subsidized numerous consumers who would anyway have bought hybrid vehicles or other fuel-efficient vehicles. Reducing carbon emissions via these programs is estimated to have cost $195 per tonne. |
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