TY - UNPB
T1 - The Impact of Scrappage Programs on the Demand for New Vehicles
T2 - Evidence from Spain
AU - Cantos-Sánchez, Pedro
AU - Gutiérrez-i-Puigarnau, Eva
AU - Mulalic, Ismir
PY - 2015/1
Y1 - 2015/1
N2 - We evaluate the impact of the Spanish car scrappage program introduced in May 2009 on short-run car purchases. The scrappage program was simultaneously discussed and implemented, and was therefore exogenous to the consumers. We analyse the effect of this program on household new car purchase decision and household expenditures. The results show that the scrappage program increased the probability to buy a new car, but decreased the mean expenditure devoted to the purchase of this new vehicle. We also evaluate the impact of the financial aid on the household welfare, which suggests that the scrappage program was neutral.
AB - We evaluate the impact of the Spanish car scrappage program introduced in May 2009 on short-run car purchases. The scrappage program was simultaneously discussed and implemented, and was therefore exogenous to the consumers. We analyse the effect of this program on household new car purchase decision and household expenditures. The results show that the scrappage program increased the probability to buy a new car, but decreased the mean expenditure devoted to the purchase of this new vehicle. We also evaluate the impact of the financial aid on the household welfare, which suggests that the scrappage program was neutral.
M3 - Working paper
T3 - MPRA Paper
BT - The Impact of Scrappage Programs on the Demand for New Vehicles
PB - Munich Personal RePEc Archive
CY - München
ER -