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Is it time to abolish company car benefits?: An analysis of transport behaviour in Germany and implications for climate change
Munich Univ Appl Sci, Germany.
Munich Univ Appl Sci, Germany.
Linnaeus University, School of Business and Economics, Department of Organisation and Entrepreneurship. Lund University, Sweden;Western Norway Res Inst, Norway.ORCID iD: 0000-0003-0505-9207
2019 (English)In: Climate Policy, ISSN 1469-3062, E-ISSN 1752-7457, Vol. 19, no 5, p. 542-555Article in journal (Refereed) Published
Abstract [en]

Company cars have received considerable attention because of their partial tax-exemption and the changes in travel behaviour they stimulate, including car model choices, distances driven, and car ownership patterns. This paper is the first to present evidence on actual transport behaviour change, based on mobility and fuel diaries, and comparing a sample of 624 company cars and 9328 private cars in Germany. Analysis confirms that company cars belong to the more heavily motorized car segments (with an average 97 kW, as opposed to 79 kW of private cars), and are driven more than private cars (24,672 km per year, compared to 12,828 km per year for private cars). Company car benefits also increase average household vehicle numbers by 25%. Results show that it is imperative to distinguish company cars of company owners relative to those driven by employees, as negative externalities increase significantly where company cars are used by the latter. Abolishing company car benefits could significantly reduce emissions from passenger road transport and stimulate change in the country's automotive industries towards a lower-carbon path. As Germany is not currently on track to meet its climate mitigation targets, this would be a timely policy shift.

Place, publisher, year, edition, pages
Taylor & Francis, 2019. Vol. 19, no 5, p. 542-555
Keywords [en]
Climate change, company cars, transport demand, transport behaviour, transport policy
National Category
Economics and Business
Research subject
Tourism
Identifiers
URN: urn:nbn:se:lnu:diva-81837DOI: 10.1080/14693062.2018.1533446ISI: 000462228500002Scopus ID: 2-s2.0-85054853911OAI: oai:DiVA.org:lnu-81837DiVA, id: diva2:1304409
Available from: 2019-04-12 Created: 2019-04-12 Last updated: 2019-08-29Bibliographically approved

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Gössling, Stefan

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CiteExportLink to record
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