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Spanier, Claudia, 2021. The effect of fuel taxation on consumers purchases : A case study on the Swedish demand for cars driven by fossil fuels. First cycle, G2E. Uppsala: SLU, Dept. of Economics


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Abstract

This study evaluates how the Swedish taxation on gasoline and diesel has affected the demand for passenger cars driven by the different fuels. A fixed effect model has been applied on a panel dataset, with data on new registered cars for all 21 Swedish counties between the years 2006-2016. The results indicate that the taxation has been effective for altering consumers’ car choices and could thus contribute to increase the possibility of reaching desired climate goals. According to the results, an increase by 1 SEK/liter in the gasoline tax (which has been slightly higher than the diesel tax) would reduce the demand for gasoline passenger cars by approximately 29% in an average year. The regression for diesel cars revealed a slightly lower, but still extensive decrease in the car purchases, by a reduction of almost 24%. Another finding from the study was that the demand for gasoline and diesel cars seems to differ between the Swedish counties. Hence, a more profound investigation if additional measures should be induced in spatial counties in order to reduce the carbon footprint could be beneficial. Lastly the study revealed that the vehicle taxation also might be a useful tool for affecting consumers’ car preferences and influencing the market in a desired direction.

Main title:The effect of fuel taxation on consumers purchases
Subtitle:A case study on the Swedish demand for cars driven by fossil fuels
Authors:Spanier, Claudia
Supervisor:Kyriakopoulou, Efthymia and Stråle, Jonathan
Examiner:Rommel, Jens
Series:Examensarbete / SLU, Institutionen för ekonomi
Volume/Sequential designation:1364
Year of Publication:2021
Level and depth descriptor:First cycle, G2E
Student's programme affiliation:NK011 Economics and Management Programme - Sustainable Development, 180.0 hp
Supervising department:(NL, NJ) > Dept. of Economics
Keywords:fuel taxation, vehicle taxation, fixed effect model, CO2 emissions, climate footprint, passenger cars
URN:NBN:urn:nbn:se:slu:epsilon-s-17162
Permanent URL:
http://urn.kb.se/resolve?urn=urn:nbn:se:slu:epsilon-s-17162
Subjects:Pollution
Economics and management
Language:English
Deposited On:15 Sep 2021 06:01
Metadata Last Modified:16 Sep 2021 01:01

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