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Evaluating Tax Rebates for Hybrid Vehicles
Abstract
This presentation uses data on car sales by model across Canadian Provinces to
estimate the effect of provincial tax rebates for hybrid electric vehicles. We ask
two questions: what is the effect of the tax rebate on the sales of hybrids? And
secondly, which vehicles do consumers forgo in response to the tax incentive?
Our results indicate that tax rebates had a large and significant effect on raising
the market share of hybrid electric vehicles. We also find that Intermediate cars
and Intermediate Sports Utilities experience a significant loss in market share
associated with the rebate. We use this information to estimate fuel savings
associated with the rebate.
Citation
Gulati, Sumeet. 2008. "Evaluating Tax Rebates for Hybrid Vehicles," Wellington Public Policy Seminar Series, December.
Motu code: WPS0812
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