Abstract
The paper begins with a brief review of evidence related to the different types of ‘green’ taxation measures that have been introduced by governments worldwide as a means to lessen the environmental consequences of private car ownership by incentivising the purchase of Low Emission Vehicles (LEV’s). An overview is then provided of current understanding of individuals’ car purchasing decisions, highlighting gaps in knowledge that exist with current explanatory models. Based on these gaps in knowledge and to investigate the potential of various taxation measures in influencing individuals’ car purchasing decisions, an online survey was conducted with students from Dalian University of Technology, China. The questionnaire was designed to measure: (1) situational and psychological factors that would be important for their next car purchase; (2) the impacts of adapting current taxation measures to incentivise LEV purchases; (3) the potential role of a range of taxation measures on their decisions on type of future car purchases. K-Cluster means analysis was employed to identify population segments according to their psychological preparedness and importance attached to situational factors in their future decisions to purchase a LEV, or not. This resulted in three distinct segments – Pro-Greens (33.6% of sample), Maybe-Greens (20.2%) and No-Greens (46.2%). Pro-Greens were more psychologically prepared to purchase LEV’s than the other two segments, whose future car purchasing decisions were primarily driven by situational factors (vehicle characteristics, performance, etc.). Pro-Greens were also more likely to be influenced by changes in current Chinese taxation measures (VAT and fuel duty), and also significantly more likely to be influenced by the introduction of future measures that would incentivise LEV purchases than the other two segments. In terms of future measures to incentivise future Chinese drivers LEV purchases and use, the introduction of a feebate system, a CO2 emissions VAT system, a distance based user charging scheme and annual road tax based on CO2 emissions would appear to have the greatest potential overall.
Highlights
Global concerns over climate change and air quality, including the negative role of transport derived emissions has led governments worldwide to design and implement policy measures in an attempt to persuade people to reduce personal carbon impacts by switching to Lower Emission Vehicles (LEV’s)
In attempt to minimise the negative effects of this rising car ownership, the Chinese government has recently introduced a range of policies, including taxation measures to encourage consumers to purchase LEVs (Qian, Soopramanien 2011)
When looking at the individual segments, 44% of Pro-Greens, 24% of Maybe-Greens and 14% of NoGreens would start thinking about buying a LEV if fuel duty was reduced by 3%, and 88% of Pro-Greens, 72% of Maybe-Greens and 54% of No-Greens indicated they would start thinking about buying a LEV if fuel duty was abolished. 24% of Pro-Greens, 12% of Maybe-Greens but no No-Greens indicated they would seriously think about buying a LEV if fuel duty was reduced by 3%, and 84% of Pro-Greens, 52% of Maybe-Greens and 36% of No-Greens if fuel duty was abolished
Summary
Global concerns over climate change and air quality, including the negative role of transport derived emissions has led governments worldwide to design and implement policy measures in an attempt to persuade people to reduce personal carbon impacts by switching to Lower Emission Vehicles (LEV’s). In an attempt to promote and facilitate the uptake of LEV’s various governments have introduced a range of taxation measures in an attempt to influence individuals’ vehicle purchasing decisions. These measures can be introduced based on the carbon dioxide (CO2) emissions of a vehicle, with lower tax payments and/or greater subsidies for LEVs, and the opposite for higher emitting vehicles. In attempt to minimise the negative effects of this rising car ownership, the Chinese government has recently introduced a range of policies, including taxation measures to encourage consumers to purchase LEVs (Qian, Soopramanien 2011). Later models have since been expanded to include aspects such as attitudes, personality and lifestyle choices (e.g. Turrentine, Kurani 2007) and more recently psychological aspects (e.g. Zhu et al 2012)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
