6533b7d7fe1ef96bd126825d
RESEARCH PRODUCT
The impact of scrappage programmes on the demand for new vehicles: Evidence from Spain
Pedro Cantos-sánchezIsmir MulalicEva Gutiérrez-i-puigarnausubject
050210 logistics & transportationPublic economicsmedia_common.quotation_subject0502 economics and business05 social sciencesEconomics Econometrics and Finance (miscellaneous)TransportationSubsidyBusiness050207 economicsMarketingWelfaremedia_commondescription
Abstract 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.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2018-10-01 | Research in Transportation Economics |