Data and Code for: Subsidizing Fuel-Efficient Cars: Evidence from China's Automobile Industry
Principal Investigator(s): View help for Principal Investigator(s) Chia-Wen Chen, Academia Sinica; Wei-Min Hu, National Chengchi University; Christopher R. Knittel, Massachusetts Institute of Technology
Version: View help for Version V1
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Project Citation:
Chen, Chia-Wen, Hu, Wei-Min, and Knittel, Christopher R. Data and Code for: Subsidizing Fuel-Efficient Cars: Evidence from China’s Automobile Industry. Nashville, TN: American Economic Association [publisher], 2021. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2021-10-29. https://doi.org/10.3886/E127421V1
Project Description
Summary:
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This paper examines the response of vehicle purchase behavior to China's largest national subsidy program for fuel-efficient vehicles during 2010 and 2011. Using variation from the program's eligibility cutoffs and the rollout of the subsidy program, the program is found to boost sales for subsidized vehicle models, but also to create a substitution effect within highly fuel-efficient vehicles. Estimates imply that ignoring the substitution effect would lead one to conclude that the program is welfare enhancing, whereas in fact the marginal cost of the program exceeds the marginal benefit by as much as 300 percent.
Funding Sources:
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Ministry of Science and Technology, Taiwan (104- 2410-H-305-010)
Scope of Project
JEL Classification:
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L50 Regulation and Industrial Policy: General
L91 Transportation: General
Q40 Energy: General
Q50 Environmental Economics: General
L50 Regulation and Industrial Policy: General
L91 Transportation: General
Q40 Energy: General
Q50 Environmental Economics: General
Geographic Coverage:
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People's Republic of China
Data Type(s):
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administrative records data
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