TY - JOUR
T1 - Effectiveness of car scrappage schemes: Counterfactual-based evidence on the Italian experience
AU - Marin, G.
AU - Zoboli, Roberto
PY - 2019
Y1 - 2019
N2 - Car scrappage schemes are generally introduced to upgrade the car fleet to reduce environmental pressures from private transportation. The aim of this paper is to present a combined use of two counterfactual techniques (RDD and DiD) to quantify the impact of Italian car scrappage schemes of 2007–2009 on the deregistration of cars. The empirical assessment of the policy effectiveness is made possible by a discontinuity in the age of cars that were eligible for the subsidy. In the DiD model we also introduce a variable on ‘product innovation’ in the car market as a factor that determines scrappage timing. Results, based on detailed information on the car fleet and the deregistration of cars in Italy, suggest no impact for the 2007 and 2008 schemes and a large impact for the 2009 scheme, which was based on rather high incentives. Results are robust to both counterfactual approaches and to different tests.
AB - Car scrappage schemes are generally introduced to upgrade the car fleet to reduce environmental pressures from private transportation. The aim of this paper is to present a combined use of two counterfactual techniques (RDD and DiD) to quantify the impact of Italian car scrappage schemes of 2007–2009 on the deregistration of cars. The empirical assessment of the policy effectiveness is made possible by a discontinuity in the age of cars that were eligible for the subsidy. In the DiD model we also introduce a variable on ‘product innovation’ in the car market as a factor that determines scrappage timing. Results, based on detailed information on the car fleet and the deregistration of cars in Italy, suggest no impact for the 2007 and 2008 schemes and a large impact for the 2009 scheme, which was based on rather high incentives. Results are robust to both counterfactual approaches and to different tests.
KW - Car scrappage schemes
KW - Difference-in differences
KW - Environmental policy effectiveness
KW - Product innovation
KW - Regression discontinuity design
KW - Car scrappage schemes
KW - Difference-in differences
KW - Environmental policy effectiveness
KW - Product innovation
KW - Regression discontinuity design
UR - https://publicatt.unicatt.it/handle/10807/144940
UR - https://www.scopus.com/inward/citedby.uri?partnerID=HzOxMe3b&scp=85076246166&origin=inward
UR - https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85076246166&origin=inward
U2 - 10.1016/j.ecotra.2019.100150
DO - 10.1016/j.ecotra.2019.100150
M3 - Article
SN - 2212-0122
VL - Economics of Transportation
SP - 100
EP - 125
JO - Economics of Transportation
JF - Economics of Transportation
IS - 21
ER -