Breathe in, breathe out: regulation on the European automobile market and air quality – CAREGUL

The car industry is subject to a multitude of environmental regulations: emission standards, fuel taxes, registration taxes and ownership taxes. This proposal studies the economic and environmental impact of such regulations in the European car market. How is air quality in Europe affected by vehicle taxation? Do policies that target carbon emissions improve or deteriorate air quality? Are governments exploiting environmental regulations to favor their national industries? How does a national regulation affect other European countries? This proposal’s objective is to quantitatively investigate these questions by combining new data together with economic models using state-of-the-art econometric techniques. Our research aims to deepen understanding of regulatory interventions and their effects on economic activity and environment. Our findings will provide inputs for the design of smarter policies.