Scrapping, Banning, and Taxing Cars in Germany: Public Economics Analyses

• Applicant: Professor Dr. Christian Traxler
• Subject Area: Economic Policy, Applied Economics
• Term: since 2023
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 510587451

This research proposal presents empirical analyses of three major policy interventions in Germany’s vehicle market: the 2009 car scrapping and subsidy program, the introduction of low emission zones as well as the reform of its vehicle taxation. The proposal builds upon unique, granular micro data obtained from Germany’s Kraftfahrt-Bundesamt, which cover the universe of all cars registered in Germany and any (de-)registration activities between 2007 and 2015. Leveraging on these rich administrative data, we will evaluate the impact of the different interventions. Our research designs together with the comprehensive administrative data allow us to separately identify the policy instruments’ direct and indirect impact as well as possible interaction effects. The most important innovation consists in our ability to pin down social interaction effects in the take-up of the scrapping subsidy. The results from the research proposal will provide policy-relevant insights that should, among others, also inform the discussion on the transition towards more sustainable mobility solutions.

• DFG Programme: Research Grants
• International Connection: United Kingdom
• Cooperation Partner: Markus Gehrsitz, Ph.D.