Abstract Due to climate change, energy dependence and other energy-related issues, most developed countries are attempting to reduce fossil-fuel use in the transport sector. Accordingly, there are several instruments that have been in place for many years, such as mandatory design standards, taxes on fuels, car purchase and ownership, and energy efficiency labels. Yet it is still not clear whether consumers value energy efficiency as a characteristic of vehicles. In this paper we use the European labelling system for light vehicles, which classifies automobiles according to their relative fuel consumption levels, as a novel, alternative indicator for energy efficiency. Moreover, we use a unique database that incorporates official commercial prices along with prices obtained through ‘mystery shopping’ at a selection of Spanish car retailers. We apply the hedonic price method to this database to estimate the price functions for vehicles and thereby obtain the marginal price of vehicles rated highly in terms of energy efficiency. Our results show that vehicles labelled A and B are sold at prices 3 to 5.9 percent higher than those with similar characteristics but lower energy-efficiency labels.
Highlights The article uses the hedonic price method to estimate willingness to pay for energy efficiency vehicles in Spain. The article uses a unique database containing official and retail prices. The European system of energy efficiency labels for light duty vehicles is used as a novel indicator of energy efficiency. Willingness to pay for energy efficiency ranges between 3 and 5.9 percent in Spain.
The price of energy efficiency in the Spanish car market
Transport Policy ; 36 ; 272-282
2014-01-01
11 pages
Article (Journal)
Electronic Resource
English
Spain , Transport , Energy , Efficiency , Hedonic methods
The price of energy efficiency in the Spanish car market
Online Contents | 2014
|Price rise calms market doubts
British Library Online Contents | 1998
NEW TONNAGE - New Spanish reefer bucks market trend
Online Contents | 2002
Spanish Construction Companies and the Latin American Market
British Library Online Contents | 1996