Replication data for: Vehicle Scrappage and Gasoline Policy

Principal Investigator(s): View help for Principal Investigator(s) Mark R. Jacobsen; Arthur A. van Benthem

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Project Citation:

Jacobsen, Mark R., and van Benthem, Arthur A. Replication data for: Vehicle Scrappage and Gasoline Policy. Nashville, TN: American Economic Association [publisher], 2015. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E112935V1

Project Description

Summary: We estimate the sensitivity of scrap decisions to changes in used car values and show how this "scrap elasticity" produces emissions leakage under fuel efficiency standards, a process known as the Gruenspecht effect. We first estimate the effect of gasoline prices on used vehicle values and scrappage of vehicles with different fuel economies. We then estimate the scrap elasticity itself, which we find to be -0.7. When applied in a model of fuel economy standards, 13-16 percent of the expected fuel savings leak away through the used vehicle market. This effect rivals or exceeds the importance of the often-cited mileage rebound effect. (JEL H23, L62, L78, Q35, Q38, Q48, Q58)

Scope of Project

JEL Classification:
      H23 Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
      L62 Automobiles; Other Transportation Equipment; Related Parts and Equipment
      L78 Industry Studies: Primary Products and Construction: Government Policy
      Q35 Hydrocarbon Resources
      Q38 Nonrenewable Resources and Conservation: Government Policy
      Q48 Energy: Government Policy
      Q58 Environmental Economics: Government Policy

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Published Versions

V1 [2019-10-12]

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