Subsidizing Fuel Efficient Cars: Evidence from China's Automobile Industry
2016/11/15
研討會日期 : 2016-11-15
時間 : 14:30
主講人 : Professor Chia-Wen Chen
主持人 : Professor Tzu-Ting Yang
地點 : Conference Room B110
演講者簡介 : Professor Chen received her Ph.D. in Economics from University of California, Davis in 2011. She is currently an Assistant Professor at the Department of Economics, National Taipei University. Her research fields are Industrial Organization, Regulation and Antitrust, Applied Econometrics.
演講摘要 : We examine the consumption response to China's national subsidy program for fuel efficient vehicles during 2010 and 2011. Using the variation from the program's eligibility cutoffs and effective months, we find that the program boosted sales for subsidized vehicle models. However, we show that the program also created a substitution effect within highly fuel efficient vehicles and that most of the subsidies went to inframarginal consumers. We also present that the program was not well-targeted: the effect of the subsidy on sales of fuel-efficient vehicles was smaller in areas where consumers were more likely to purchase fuel-inefficient models or were lower educated. Overall, our results suggest that the program was an expensive way to reduce carbon dioxide emissions and hardly welfare enhancing.
