Abstract
Using detailed national brand-level automobile sales data from January 2004 to the end of 2009, we quantify the impact of a series of tax policy stimuli initiated by the Chinese Government on automobile sales in China. These tax stimuli aimed either to prevent high displacement car consumption or to encourage low displacement car purchases. We conclude that the first two tax adjustments surpass high-emission auto sales, and the third adjustment promotes the overall auto sales. Key words: Tax policy; automobile industry; country of origin; automobile emission.
Highlights
The total sales of China automobile market in 2009 was13.64 million with 46.15 percent year-on-year growth, surpassing the United States for the first time and becoming the world’s largest auto market
What moderator variables contribute to it? Specially, we examine the regulation of automobile emission and country of origin, and answer whether high-emission cars are inhibited and low-emission ones are promoted, and show that indigenous cars or joint ventures cars are more inhibited
Stm1, Stm2 and Stm3 are excise tax policy promulgated in April 2006, adjustment policy promulgated in September 2006 and purchase tax adjustment policy promulgated in January 2009 respectively
Summary
13.64 million with 46.15 percent year-on-year growth, surpassing the United States for the first time and becoming the world’s largest auto market. Under the background of conservation-minded and eco-friendly society, it is very necessary to develop energy-efficient, low - emission and material consumption automobile industry, and improve automobile products’ structure and market purchasing orientation through special policies and methods. Against this background, the government adjusted excise tax twice on April 1st, 2006 and September 1st, 2008 respectively, and one purchase tax adjustment on January 2009. The fifth, we stand on the sight of the consumer behavior but not the qualitative and theoretical researches
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