Template-Type: ReDIF-Paper 1.0 Series: Tinbergen Institute Discussion Papers Creation-Date: 2011-07-21 Number: 11-100/3 Author-Name: Jos N. van Ommeren Author-Workplace-Name: VU University Amsterdam Author-Name: Eva Gutierrez-i-Puigarnau Author-Workplace-Name: VU University Amsterdam Title: Distortionary Company Car Taxation: Deadweight Losses through Increased Car Ownership Abstract: This discussion paper led to a publication in Empirical Economics 2013, 45(3), 1189-1204.

We analyse the effects of distortionary company car taxation through increased household carownership for the Netherlands. We use several identification strategies and demonstrate thatfor about 20 percent of households company car possession increases car ownership. Theannual welfare loss of distortionary company taxation through increased car ownership isgenerally rather small, maximally €120 per company car, and likely much less. However, forpolicies that exempt households from paying tax on their company car, the annual deadweightloss is likely higher. Classification-JEL: D12; D61; J33; R41; R48 Keywords: Fringe benefits; taxation; company car File-Url: https://papers.tinbergen.nl/11100.pdf File-Format: application/pdf File-Size: 215893 bytes Handle: RePEc:tin:wpaper:20110100