|Appears in Collections:||Economics Journal Articles|
|Peer Review Status:||Refereed|
|Title:||The taxation of drivers and the choice of car fuel type|
de Vries, Frans
|Keywords:||Car fuel tax|
|Citation:||Rouwendal J & de Vries F (1999) The taxation of drivers and the choice of car fuel type. Energy Economics, 21 (1), pp. 17-35. https://doi.org/10.1016/S0140-9883%2898%2900021-8|
|Abstract:||In this paper the choice of the car fuel type is studied. In the Dutch situation three types are important: gasoline, diesel and LPG, with 80% of the cars using gasoline. Incentives for using diesel or LPG are provided by the tax system that implies higher fixed cost, but lower variable cost for users of these fuel types. We start by studying fuel type choice on the basis of a logit model, and move on to estimate demand functions for kilometres driven for social purposes while correcting for the possible selectivity bias. We find that diesel and LPG are in general regarded as inferior alternatives, but that monetary incentives are sufficiently strong to overcome this hurdle for drivers with a large demand for kilometres. We also find that there are significant effects of the lower variable cost for diesel and LPG drivers on their demand for kilometres. The conclusions are confirmed by estimation of a structural model in which fuel type choice and demand for kilometres are consistently explained on the basis of one set of preferences and unobserved heterogeneity is taken into account.|
|Rights:||The publisher does not allow this work to be made publicly available in this Repository. Please use the Request a Copy feature at the foot of the Repository record to request a copy directly from the author. You can only request a copy if you wish to use this work for your own research or private study.|
|de_Vries_1999_The_taxation_of_drivers.pdf||Fulltext - Published Version||185.3 kB||Adobe PDF||Under Embargo until 2999-12-29 Request a copy|
Note: If any of the files in this item are currently embargoed, you can request a copy directly from the author by clicking the padlock icon above. However, this facility is dependent on the depositor still being contactable at their original email address.
This item is protected by original copyright
Items in the Repository are protected by copyright, with all rights reserved, unless otherwise indicated.
The metadata of the records in the Repository are available under the CC0 public domain dedication: No Rights Reserved https://creativecommons.org/publicdomain/zero/1.0/
If you believe that any material held in STORRE infringes copyright, please contact firstname.lastname@example.org providing details and we will remove the Work from public display in STORRE and investigate your claim.