WP 2023-05.
Executive Summary
This study aims to investigate the effectiveness of car scrappage schemes implemented in the
European Union (EU) during the economic crisis of 2009. The study uses a synthetic control
variable and a difference-in-differences method to evaluate these policies. Using monthly
data on new passenger car registrations in European countries, as well as unique detailed
registration and deregistration data for Slovakia and the Czech Republic, the study examines
the impact of the schemes. The results show that the impact of scrappage schemes varies
across countries, with statistically significant effects observed in Germany and Slovakia,
followed by Greece and Italy, albeit limited in some aspects. The results of the study
underline the need for careful policy design and show that the effectiveness of car scrappage
schemes goes beyond the level of premiums or budget allocations. It is also influenced by
other elements such as the duration of the scheme, the overarching policy environment and
the novelty of the implementation strategies.
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Effectiveness of car scrappage schemes
