The use of car taxes is one way to curb CO2 emissions from new passenger cars as it promotes the energy efficiency of cars. Vehicle taxes affect the price structure of passenger cars, and therefore, have an impact on car buyers' choice of cars. COWI has developed a COWI Car Choice Model. The model can be used to determine which impact changes in the current car tax structure (to a more CO2 related tax) have on the passenger cars' CO2 emission.
The COWI Car Choice Model uses statistical analyses to predict the number and the types of new cars that will be sold for any given tax structure. The predictions are based on very detailed information on household demand patterns and characteristics as well as car features. The model calculates the effects of changes in the car tax structure by comparing the outputs of different tax structures.
The model provides detailed ilnformation on the purchase of new cars e.g. number of cars, emission levels, taxes (total revenue and revenue per car). The possible extensions of the model are numerous and include calculations that cover the entire car fleet.