We are grateful to the editor Frederic Vermeulen and two anonymous referees for their remarks. We also thank Didier Blanchet, Aymeric de Loubens, Eric Dubois, Isis Durrmeyer, Philippe Février, Stéphane Gauthier, Stefan Gössling, Marc Gurgand, Johan Hombert, Cristian Huse, Vincent Marcus, Nicolas Riedinger and participants to the 11th CEPR IO, the 10th Econometric Society World Congress and 4th World Congress of Environmental and Resource Economists for their useful comments. We finally thank Julien Mollet, Pierre-Louis Debar (CCFA), Marina Robin (SOES) and Ronan Le Saout (ENSAE) for providing us with the data. The views expressed are those of the authors only and do not reflect the views of any of the institutions they work or have worked for.
The Environmental Effect of Green Taxation: The Case of the French Bonus/Malus
Article first published online: 14 MAR 2014
© 2013 Royal Economic Society
The Economic Journal
Volume 124, Issue 578, pages F444–F480, August 2014
How to Cite
D'Haultfœuille, X., Givord, P. and Boutin, X. (2014), The Environmental Effect of Green Taxation: The Case of the French Bonus/Malus. The Economic Journal, 124: F444–F480. doi: 10.1111/ecoj.12089
- Issue published online: 28 JUL 2014
- Article first published online: 14 MAR 2014
- Accepted manuscript online: 16 SEP 2013 05:30AM EST
- Manuscript Received: 15 AUG 2013
- Manuscript Accepted: 7 FEB 2013
A feebate on the purchase of new cars, the Bonus/Malus, was introduced in France in 2008. Less polluting cars benefited from a price reduction of up to 1,000 euro, whereas the most polluting ones were subject to a taxation of 2,600 euro. We estimate the impact of this policy on carbon dioxide emissions in the short and long run. If the shift towards the classes benefiting from rebates is considerable, we estimate the environmental impact of the policy to be negative. While feebates may be efficient tools for reducing CO2 emissions, they should thus be designed carefully to achieve their primary goal.