The impact of scrappage programmes on the demand for new vehicles: Evidence from Spain

The authors 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. The authors 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. The authors also evaluate the effect of financial aid on household welfare. The authors' 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

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Filing Info

  • Accession Number: 01684126
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Oct 17 2018 3:15PM