This working paper describes the effect that taxes and other incentives in the European Union (EU) have had on CO2 emissions, and it identifies a shift over time towards tax-optimized vehicles. In addition to vehicle CO2 emission standards imposed at the European Union level, several EU member states have put in place tax and other incentives to encourage consumers to buy more efficient vehicles. The authors examine the effect those policies have had on CO2 emissions specifically.

Publication date
Type of publication