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Explaining the Adoption of Diesel Fuel Passenger Cars in Europe

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  • Linn, Joshua

    (Resources for the Future)

Abstract

Compared with gasoline engines, diesel fuel engines significantly reduce fuel consumption and greenhouse gas emissions from passenger vehicles, but they emit more nitrogen oxides and other pollutants. Across countries, the market share of diesel fuel engines in passenger vehicles varies from close to zero to more than 80 percent. After specifying and estimating the parameters of a model of vehicle markets spanning seven European countries, I show that vehicle taxes and demand for fuel economy, rather than fuel prices or the set of vehicles in the market, explain adoption. The model is used to compare the environmental implications of fuel taxes and carbon dioxide emissions rate standards.

Suggested Citation

  • Linn, Joshua, "undated". "Explaining the Adoption of Diesel Fuel Passenger Cars in Europe," RFF Working Paper Series dp-14-08-rev, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-14-08-rev
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    File URL: http://www.rff.org/RFF/documents/RFF-DP-14-08-REV.pdf
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    References listed on IDEAS

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    Cited by:

    1. Verboven, Frank & Grigolon, Laura & Reynaert, Mathias, 2014. "Consumer valuation of fuel costs and the effectiveness of tax policy: Evidence from the European car market," CEPR Discussion Papers 10301, C.E.P.R. Discussion Papers.
    2. Shanjun Li & Yiyi Zhou, 2015. "Dynamics of Technology Adoption and Critical Mass: The Case of U.S. Electric Vehicle Market," Working Papers 15-10, NET Institute.
    3. Miravete, Eugenio & Moral, Maria & Thurk, Jeff, 2015. "Innovation, Emissions Policy, and Competitive Advantage in the Diffusion of European Diesel Automobiles," CEPR Discussion Papers 10783, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    vehicle demand estimation; demand for fuel economy and performance; fuel taxes; vehicle taxes; carbon dioxide emissions ratesCreation-Date: 2015-08-17;
    All these keywords.

    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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