Abstract This study evaluates whether a motorist's choice over green cars (i.e., cars with featuring low C O 2 emissions) and non-green cars (i.e., cars featuring high C O 2 emissions) is efficient. To this end, we present a micro-founded model of motorist choice incorporating the impact of eco-incentives and taxation on C O 2 emissions. Subsequently, we implement data envelopment analysis on a large database of new cars registered in 2019 to evaluate efficiency. The results show that the motorist's optimal choice (green car) does not coincide with the efficient choice. Moreover, motorist choice is mainly guided by the high price of green cars. On average, the efficient choice coincides with cars that end up in the dark area (they do not benefit from eco-incentives and do not pay the pollution tax), being the cheapest, the lightest, the least powerful (low Kw) and petrol fuelled. On average, these elements pertain to Italian motorists with respect to their tastes; most importantly, their budgets do not go well with the high costs of green cars.

    Highlights We present a model of motorists' optimal choice. We verify if a motorist's optimal choice coincides with their efficient choice. Eco-bonus is not sufficient because the optimal choice coincides with the efficient one. We implement an efficiency analysis via data envelopment analysis. Price is an important factor regarding the choice of the car.


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    Title :

    Are green cars an optimal and efficient choice for motorists? Evidence from Italy


    Contributors:

    Published in:

    Transport Policy ; 141 ; 140-151


    Publication date :

    2023-07-14


    Size :

    12 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English




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