Policy     Economics     Technologies

Analysis of progressive road vehicle tax indexed to absolute CO2

At the request of the Dutch Finance Ministry, CE Delft has investigated the CO2 impact of redesigning the vehicle tax for passenger cars (BPM) from being based on catalogue value, as at present, the CO2 based system whereby the CO2 charge is progressively indexed to the CO2 emissions of the new vehicle. This variant was compared with the effectiveness of the two BPM variants from the study on ‘greening the Dutch tax system’ (differentiation of BPM according to absolute CO2 emission and BPM based on CO2) and the current BPM based on energy labels (rates for 2008).

Authors CE

Martijn Blom
Arno Schroten

Delft, March 2008

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