Empirical Investigation of Public Policy on Automotive Sales in the American, Canadian, and German Markets
Date of Award
Business, Accounting, & Economics
Dr. Michael Levin, Ph.D.
First Committee Member
Dr. David Robertson, Ph.D.
Second Committee Member
Dr. Ava Liu, Ph.D.
Scrappage Scheme, Car Allowance Rebate System, Cash-for-Clunkers, Retire Your Ride, Umweltprämie, Resource-Advantage Theory
Automotive scrappage programs aim to stimulate the economy, while benefiting the environment, by replacing older fuel inefficient cars with new fuel-efficient vehicles. Public policies, such as rebates, are discussed as indirect influencers of competition. Using the Resource-Advantage Theory as a framework, this indirect influence is empirically examined using three programs: one from the United States, Germany, and Canada. This paper found that the duration of the program, as well as the size of the rebate, matter to consumers and the overall success of the program. The United States had a large enough rebate but failed to last long enough to make a sizable impact. Canada, whose program lasted two years, did not offer a large enough incentive and ultimately drove manufacturers to provide their own rebate. Germany’s program is believed to be the most successful of the three at increasing sales. It was not as expensive as the American scheme but was still able to draw consumers in due to the length of time people were given to respond.
Eliades, Hannah, "Empirical Investigation of Public Policy on Automotive Sales in the American, Canadian, and German Markets" (2019). Undergraduate Distinction Papers. 75.