Journal article
The impact of scrappage programmes on the demand for new vehicles: Evidence from Spain
University of Valencia1
Ministry of Economic Affairs and Climate Policy, Netherlands2
Transport DTU, Department of Management Engineering, Technical University of Denmark3
Systems Analysis, Department of Management Engineering, Technical University of Denmark4
Department of Management Engineering, Technical University of Denmark5
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.
| Language: | English |
|---|---|
| Year: | 2018 |
| Pages: | 83-96 |
| ISSN: | 18757979 and 07398859 |
| Types: | Journal article |
| DOI: | 10.1016/j.retrec.2017.11.006 |
| ORCIDs: | Mulalic, Ismir |
