Research: The role of company car taxation to promote low carbon vehicle technologies

The role of company car taxation to promote low carbon vehicle technologies paper was presented at the Universities' Transport Studies Group Annual Conference, January 2012 in Aberdeen. The paper provides a review of the CO2 based company car taxation, which has been in place in the UK since 2002. One aim of this reform was to promote the uptake of low carbon vehicle technologies, but in practice the tax reform led to the widespread use of diesel cars. In 2010 a modification to the company car taxation system was introduced, which incentivised drivers of low and ultra-low carbon vehicles. This paper explores the working and effects of the company car tax system and suggests that the tax structure will particularly favour plug-in hybrids.

Download your free copy here: The role of company car taxation to promote low carbon vehicle technologies.