Vehicle tax policies and new passenger car CO2 performance in EU member states

ABSTRACTThis article explores the causes for differences in the average CO2 emissions intensity of the new passenger car (NPC) fleet in member states (MS) across Europe. Although EU policies mitigating CO2 emissions from NPCs have been in place since 1999, MS strongly diverge in the absolute amount and relative change in emissions over the last decade. The authors employ a qualitative approach to analyse the factors, in particular national vehicle taxes, contributing to this divergence and the relative contribution of national and European policies in reducing national CO2 emissions from NPCs. The analysis shows that there has been a significant reduction in CO2 emissions intensity of NPCs since 2007 across most MS, compared with the six years previous to that date. This would indicate that EU-wide policies, such as the CO2 vehicles regulation, along with the economic recession in 2008, have influenced national NPC CO2 emissions. Generally, countries with CO2-differentiated vehicle taxes are observed as m...