German car buyers' willingness to pay to reduce CO2 emissions

Motorised individual transport strongly contributes to global CO2 emissions, due to its intensive usage of fossil fuels. Current political efforts addressing this issue (i.e. emission performance standards in the EU) are directed towards car manufacturers. Manufacturers who exceed the specified standard will have to pay fines. This paper focuses on the demand side. It examines whether CO2 emissions per kilometre is a relevant attribute in car choices. Based on a stated preference experiment among potential car buyers from Germany, different mixed logit specifications are estimated. In addition, distributions of willingness to pay measures for an abatement of CO2 emissions are obtained. The results suggest that the emissions performance of a car matters substantially, but its consideration varies heavily across the sampled population. In particular, some evidence on gender, age and education effects on climate concerns is provided. So, we find that women are willing to pay more for an abatement of CO2 than men, people under 45 years more than people 45 and older, and people who possess a higher education entrance qualification more than those who do not.

Language

  • English

Media Info

  • Pagination: 21p
  • Serial:
    • Issue Number: 09-058

Subject/Index Terms

Filing Info

  • Accession Number: 01384756
  • Record Type: Publication
  • Source Agency: ARRB
  • Files: ATRI
  • Created Date: Aug 22 2012 4:53PM