The impact of tax policy stimulus on automobile choice- Evidence from Chinese automobile industry | Zendy

Xi Chen | Zendy; Yun Wang | Zendy

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The impact of tax policy stimulus on automobile choice- Evidence from Chinese automobile industry

Author(s) -

Xi Chen,

Yun Wang

Publication year - 2015

Publication title -

african journal of business management

Language(s) - English

Resource type - Journals

ISSN - 1993-8233

DOI - 10.5897/ajbm2014.7346

Subject(s) - stimulus (psychology) , automotive industry , china , tax policy , business , auto industry , government (linguistics) , tax reform , marketing , economics , public economics , engineering , psychology , political science , law , psychotherapist , aerospace engineering , linguistics , philosophy

Using detailed national brand-level automobile sales data from January 2004 to the end of 2009, we quantify the impact of a series of tax policy stimuli initiated by the Chinese Government on automobile sales in China. These tax stimuli aimed either to prevent high displacement car consumption or to encourage low displacement car purchases. We conclude that the first two tax adjustments surpass high-emission auto sales, and the third adjustment promotes the overall auto sales. Key words: Tax policy; automobile industry; country of origin; automobile emission.

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