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Governmental regulation impact on producers and consumers: A longitudinal analysis of the European automotive market

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  • Wells, Peter
  • Varma, Adarsh
  • Newman, Dan
  • Kay, Duncan
  • Gibson, Gena
  • Beevor, Jamie
  • Skinner, Ian

Abstract

This paper analyses the issue of whether governmental regulation results in higher producer costs that are then passed on as higher prices to the consumer, with a longitudinal study of the European automotive market. Using a large data set for the period 1995–2010 the hedonic price analysis study concludes that the claims that regulation would result in higher per unit costs for new cars are not supported, at least as far as the pass-through into retail or list prices are concerned. Consequently, regulators need a better understanding of what the ‘cost of regulation’ claims entail over the longer term – with the implication that additional costs even where they arise are more easily absorbed than has hitherto been expected.

Suggested Citation

  • Wells, Peter & Varma, Adarsh & Newman, Dan & Kay, Duncan & Gibson, Gena & Beevor, Jamie & Skinner, Ian, 2013. "Governmental regulation impact on producers and consumers: A longitudinal analysis of the European automotive market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 47(C), pages 28-41.
    • Handle: RePEc:eee:transa:v:47:y:2013:i:c:p:28-41
    DOI: 10.1016/j.tra.2012.10.023
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    2. Hoffmann, Sebastian & Weyer, Johannes & Longen, Jessica, 2017. "Discontinuation of the automobility regime? An integrated approach to multi-level governance," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 391-408.
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    4. Skeete, Jean-Paul, 2017. "Examining the role of policy design and policy interaction in EU automotive emissions performance gaps," Energy Policy, Elsevier, vol. 104(C), pages 373-381.
    5. van der Vooren, A. & Alkemade, F. & Hekkert, M.P., 2013. "Environmental performance and firm strategies in the dutch automotive sector," Transportation Research Part A: Policy and Practice, Elsevier, vol. 54(C), pages 111-126.

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