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Carbon dioxide: Too many different prices for the motorist

Ferdinand Dudenhöffer, Marcus Krüger
ifo Institut für Wirtschaftsforschung, München, 2008

ifo Schnelldienst, 2008, 61, Nr. 10, 17-18

If the current road tax in Germany is converted into a so-called CO2 tax, the future tax will set a price for every gram of reduced CO2. Ferdinand Dudenhöffer and Marcus Krüger, Center for Automotive Research (CAR) at the Gelsenkirchen University of Applied Science show that with this tax a gram of CO2 will have several prices, depending on whether it comes from a new or an old car.

JEL Classification: H200,Q200

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ifo Institut für Wirtschaftsforschung, München, 2008