23 November 2005 Policy tools to influence vehicle purchasing behaviour

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Policy tools to influence vehicle purchasing

behaviour

ERA-NET Action Group

COST 355 Meeting in BerlinBerlin 23 November 2005

Stéphanie Vincent Lyk-Jensen

23 November 2005 Policy tools to influence vehicle purchasing behaviour

2Contents

What is ERA-NET TRANSPORT?ERA-NET partnersGoals and objectives of the ERA-NET TRANSPORTAction Groups in the ERA-NET TRANSPORT

BackgroundThe scopeThe contentThe contextState of the art (in Denmark)Time scheduleList of participants

23 November 2005 Policy tools to influence vehicle purchasing behaviour

3What is ERA-NET TRANSPORT?www.transport-era.net

• ERA-NET TRANSPORT can be described as a cooperative European framework for transport research programming

• It brings together – the transport research programmes from eleven countries– all relevant players in the field of transport research like public

authorities, agencies, funding bodies and scientific institutions

• It supports, coordinates, formulates, implements and disseminates cooperation in transport research

• It covers the whole thematic range of transport research including all modes of transport

• The programme is financed by the EU’s 6th Framework Programme

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ERA-NET partners1. Germany: TÜV Management System Gmbh, PTMVBW; Federal Ministry of

Education and Research

2. Austria: Austrian Federal Ministry for Transport, Innovation and Technology

3. Belgium: Federal Public Planning Service – Science Policy

4. Finland: Ministry of Transport and Communication

5. France: Ministère de l’équipement, des transports, du logement, du tourisme et de la mer; Direction de la recherche et des affaires scientifiques et techniques (METLTM/DRAST); Institut des sciences et des techniques de l’équipement et de l’environnement pour le développement (ISTED).

6. The Netherlands: Ministry of Transport, Public Works and Water Management

7. Norway: Ministry of Transport

8. Sweden: The Swedish agency for innovation systems (Vinnova)

9. The UK: Department for Transport (Dft)

10.Poland: Ministry of Scientific Research and Information Technology

11.Denmark: The Danish Ministry of Transport and Energy

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Goals and objectives of the ERA-NET TRANSPORT

• Enable target-oriented research cooperation outside time-consuming procedures of framework programmes

• Increase the efficient use of resources

• Enable joint activities on tasks that cannot be tackled solely on a national basis

• Create new research networking and business opportunities for research managers and policy customers

• Provide valuable information about European research priorities for the support of national policy making

• Improve the competitiveness of European research

23 November 2005 Policy tools to influence vehicle purchasing behaviour

6Action Groups in the ERA-NET TRANSPORT

• Actions Groups are results mainly from the targeted workshops (TWS) of the ERA-NET TRANSPORT

• Targeted Workshop 2: Environmental improvement through vehicle technology, 13-14 June 2005, Paris

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Action Groups in the ERA-NET TRANSPORT

• Definition: Groups of national programme managers intending to set up joint activities within the selected topic

• The specific research topic has to be endorsed by three or more ERA-NET TRANSPORT partners

• The action group has a leader and a proposed outcome: from exchange of information up to the potential joint calls for proposal

23 November 2005 Policy tools to influence vehicle purchasing behaviour

8Background

• European transport sector is one of the main contributors to the growth in green house gas (GHG) emissions

• Transport sector is vulnerable to diminishing oil resources and rising oil prices

• Part of EU strategy also includes measures aiming at influencing consumer behaviour e.g., higher taxes on fuels and agreements with the automotive industry

• Important to assess the effects of policy encouraging a shift toward cleaner vehicles as car fleet renewal rate is very slow

• Relevant to start cooperation between national research programme

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The scope• “Cleaner vehicles” (passenger cars) lower fuel consumption

and lower CO2 emissions but also renewable fuel vehicles. Both bio-fuelled and hydrogen-fuelled cars are relevant options to consider

• The possible shift to alternative fuels depends on the market potential and obstacles to the introduction of renewable fuel cars

• This in turn depends on the purchase price of these cars, their technical performance, the price of the alternative fuels, and distances between fuel stations

• Potential policies to be considered should not be limited to traditional tax reductions for cars and/or fuels but should also, when possible, address the energy sector as a whole

– e.g. biomass is limited and the use of bio-fuel in the transport sector will compete with its use in other energy sectors where it might be a more cost-effective GHG-reducing fuel.

• Eco labelling also constitutes another kind of tool for influencing car buyer decisions and orient them towards vehicles with lower fuel consumption and CO2 emissions: consumer’s awareness

23 November 2005 Policy tools to influence vehicle purchasing behaviour

10The content

The research plan will consist in:

• A review on the main findings from car choice modelling within the EU member states will make it possible to identify differences between member states

• A review of relevant transport policy measures/instruments in the EU

• A classification of policy measures through the policy instruments used, e.g. like gasoline taxes; annual ownership taxes; car prices, taxes, subsidies, eco labelling, etc.

• An impact assessment of policy measures, and a benchmark for countries having car industry (usually lower car taxations) compared to countries not having a car industry (usually higher car taxations)

• A conclusion: what is working and what is not working and why? Identify the conditions necessary to promote changes

Objective: Provide policy makers with a framework of possible tools

23 November 2005 Policy tools to influence vehicle purchasing behaviour

11The context• One of the major roles of transport policy is to manage,

slow down or reverse increases in CO2 emissions

• The objective can be attained in many ways by behavioural changes and/or technical improvements

• The focus of this action is behavioural changes in terms of purchasing new cleaner vehicles

• During the course of the work consultations with the following stakeholders could be relevant:– The European automotive industry (ACEA, and OEM)– The EU member states

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12The level of cooperation

• Exchange of data

• Clustering

• Joint call for proposal (eventually)

The level of cooperation is subject to further consultations and considerations

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13State of the art

• It is one of the first activities of the Action Group

• Focus: behavioural response in terms of car purchasing

• Synergy effects between the output of COST 355 and the present Action Group

• In Denmark: Different projects concerning car choice modelling

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14State of the art in Denmark

• TRIP project: Dynamics of car ownership: a micro panel study (1992-1999) aiming at – quantifying the effect of different policy instruments on the

development of car ownership and– Increasing the understanding of which socio-economic factors

influence the likelihood of car ownership

• COWI car choice modelling: a panel data analysis for the period 1992-2002. The objective was to evaluate the impact of changes in Danish car taxation on the car fleet – The model calculates the actual market behaviour of the

buyers of new diesel or petrol cars, given the characteristics of the car (e.g. fuel type), and the price and taxation of car and fuel.

– Preference indicators also include chosen car size and fuel consumption by kilometre

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Forthcoming project in DenmarkMarket potential for renewable fuels passenger cars

• The objectives are: – to analyse the potential penetration of renewable energy in the

transport sector– to analyse the potential for reducing oil-based energy

consumption and the possible reduction of GHG emissions – to construct modelling instruments that should make it

possible to assess impacts on both the energy sector and public finances

• These policy tools are: – a model to assess the market potential for Renewable Fuel

Passenger cars (RFP cars) based on fuel and car prices, distance to fuelling stations, and necessary changes in technical car performance

– an enhanced model of the energy system and fuelling infrastructure

– Environmental impact assessments and cost benefit analysis

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16Time schedule

• Draft position paper: October 2005

• Final position paper / Management Committee decision: November 2005

• Expected final work plan for Action Group: January 2006

• Expected commitments to participate: February 2006

• Expected (earliest) start of the Action Group activity: March 2006

• Proposed duration of the project: 2 years, reported by the end of March 2008

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17List of participants

• Currently: Denmark (leader), Norway, Poland, (The Netherlands)

• Maybe: Belgium, France ?

• New participants have the possibility to join the Action Group later on

Thank your for your attention Thank your for your attention

Stéphanie Vincent Lyk-Jensensvl@dtf.dkStéphanie Vincent Lyk-Jensensvl@dtf.dk