The Impact of Scrappage Programmes on the Demand for New Vehicles: Evidence from Spain

Pedro Cantos-Sánchez; Eva Gutiérrez-i-Puigarnau; Ismir Mulalic

doi:10.1016/j.retrec.2017.11.006

The Impact of Scrappage Programmes on the Demand for New Vehicles: Evidence from Spain

Pedro Cantos-Sánchez^*, Eva Gutiérrez-i-Puigarnau, Ismir Mulalic

^*Corresponding author af dette arbejde

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › peer review

Abstract

We evaluate the impact of the Spanish car scrappage programme introduced in May 2009 on short-run car purchases. The scrappage programme was simultaneously discussed and implemented and was therefore exogenous to the consumers. We analyse the effect of this programme on household new car purchase decision and household expenditures. The results show that the scrappage programme increased the probability of buying a new car but decreased the mean expenditure devoted to the purchase of this new vehicle. We also evaluate the effect of financial aid on household welfare. Our best estimate of the welfare gain related to the scrappage programme is very similar to the aid of €1000 offered by the public administrations.

Originalsprog	Engelsk
Tidsskrift	Research in Transportation Economics
Vol/bind	70
Sider (fra-til)	83-96
Antal sider	14
ISSN	0739-8859
DOI	https://doi.org/10.1016/j.retrec.2017.11.006
Status	Udgivet - okt. 2018
Udgivet eksternt	Ja

FN’s Verdensmål

Dette resultat bidrager til følgende verdensmål

Adgang til dokumentet

10.1016/j.retrec.2017.11.006

Handle.net

Persistent link

Citationsformater

@article{665a8edbef3140d08bb96345c7a2e363,

title = "The Impact of Scrappage Programmes on the Demand for New Vehicles: Evidence from Spain",

abstract = "We evaluate the impact of the Spanish car scrappage programme introduced in May 2009 on short-run car purchases. The scrappage programme was simultaneously discussed and implemented and was therefore exogenous to the consumers. We analyse the effect of this programme on household new car purchase decision and household expenditures. The results show that the scrappage programme increased the probability of buying a new car but decreased the mean expenditure devoted to the purchase of this new vehicle. We also evaluate the effect of financial aid on household welfare. Our best estimate of the welfare gain related to the scrappage programme is very similar to the aid of €1000 offered by the public administrations.",

keywords = "Car demand, Scrappage programme, Cash for clunkers, Economic crisis, Public subsidies, AIDS model, Household behaviour",

author = "Pedro Cantos-S{\'a}nchez and Eva Guti{\'e}rrez-i-Puigarnau and Ismir Mulalic",

year = "2018",

month = oct,

doi = "10.1016/j.retrec.2017.11.006",

language = "English",

volume = "70",

pages = "83--96",

journal = "Research in Transportation Economics",

issn = "0739-8859",

publisher = "Elsevier",

}

TY - JOUR

T1 - The Impact of Scrappage Programmes on the Demand for New Vehicles

T2 - Evidence from Spain

AU - Cantos-Sánchez, Pedro

AU - Gutiérrez-i-Puigarnau, Eva

AU - Mulalic, Ismir

PY - 2018/10

Y1 - 2018/10

N2 - We evaluate the impact of the Spanish car scrappage programme introduced in May 2009 on short-run car purchases. The scrappage programme was simultaneously discussed and implemented and was therefore exogenous to the consumers. We analyse the effect of this programme on household new car purchase decision and household expenditures. The results show that the scrappage programme increased the probability of buying a new car but decreased the mean expenditure devoted to the purchase of this new vehicle. We also evaluate the effect of financial aid on household welfare. Our best estimate of the welfare gain related to the scrappage programme is very similar to the aid of €1000 offered by the public administrations.

AB - We evaluate the impact of the Spanish car scrappage programme introduced in May 2009 on short-run car purchases. The scrappage programme was simultaneously discussed and implemented and was therefore exogenous to the consumers. We analyse the effect of this programme on household new car purchase decision and household expenditures. The results show that the scrappage programme increased the probability of buying a new car but decreased the mean expenditure devoted to the purchase of this new vehicle. We also evaluate the effect of financial aid on household welfare. Our best estimate of the welfare gain related to the scrappage programme is very similar to the aid of €1000 offered by the public administrations.

KW - Car demand

KW - Scrappage programme

KW - Cash for clunkers

KW - Economic crisis

KW - Public subsidies

KW - AIDS model

KW - Household behaviour

U2 - 10.1016/j.retrec.2017.11.006

DO - 10.1016/j.retrec.2017.11.006

M3 - Journal article

AN - SCOPUS:85040008161

SN - 0739-8859

VL - 70

SP - 83

EP - 96

JO - Research in Transportation Economics

JF - Research in Transportation Economics

ER -