Abstract:

This report provides an overview of vehicle taxation policy across Europe. The aim is to inform how governments might induce consumers to opt for low-emission vehicles and reduce CO2 emissions of national vehicle fleets. This report starts with a general summary of taxation policy for passenger cars in Europe, followed by a detailed review of five selected European markets including France, Germany, the Netherlands, Norway, and the United Kingdom. Then, the impact of taxation policy in these markets on total consumer vehicle costs for selected models is assessed. Based on these findings, this report:

(1) Compares the vehicle taxation policies in these five markets; and

(2) Identify which policies offer the highest cost-benefit for consumers choosing a low-emission vehicle.