Abstract
This study explores the effects of Volkswagen׳s 2015 emissions scandal on the used car market in Israel. Using adifference-in-differences research design and administrative and proprietary data, we find that after Diesel gate the number of transactions involving VW manipulated cars dropped by 18%, and the resale price of these cars fell by 6%. We find that the drop in the number of transactions was concentrated among private sellers, which suggests that the supply of vehicles depends on the seller type. We discuss alternative explanations for our findings and their relevance to green-vehicle policies.
Translated title of the contribution | The Impact of Environmental Fraud on the Used Car Market:Evidence from Diesel gate |
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Original language | Hebrew |
Pages (from-to) | 94-105 |
Number of pages | 12 |
Journal | חידושים בניהול |
Volume | 10 |
State | Published - 2022 |
IHP publications
- ihp
- Air -- Pollution
- Automobiles -- Purchasing
- Business
- Diesel fuels
- Economic policy
- Environmental policy
- Fraud
- Vehicles