Dear colleagues, The Department of Economics cordially invites you to the WU Economics Research Seminar (Department Seminar) on Tuesday, February 25th, with Alon Eizenberg (The Hebrew University of Jerusalem) on " Green Subsidies and Information Provision in the Automobile Market" Abstract: Both monetary incentives and information provision may be used to stir consumers towards less polluting products. This paper quantifies the effect of both channels in the context of a green subsidy reform in the Israeli automobile market. Stark changes in the regulatory regime allow the same physical automobile to be observed with different environmental scores. This variation is embedded into a structural model of consumer demand and firm pricing. Preliminary results suggest that consumer demand is sensitive to information regarding a vehicle's degree of pollution: as the pollution score increases by a single unit, the decline in willingness-to-pay for the vehicle by the average consumer amounts to 1%-2% of the price of a typical Sedan. This decline is on par with the corresponding subsidy loss, suggesting that information provision may be as effective as monetary incentives in curbing the demand for polluting vehicles. Date: Tuesday, February 25th Time: 4.30 to 6 pm (CET) Location: building D4, 2nd floor, room D4.2.008<https://campus.wu.ac.at/?q=D4.2.008> With best regards, Harald Oberhofer --- Univ.-Prof. Dr. Harald Oberhofer Department of Economics WU Vienna University of Economics and Business Phone: +43/1/31336-4984 Email: harald.oberhofer@wu.ac.at<mailto:harald.oberhofer@wu.ac.at> https://www.wu.ac.at/en/economics/people/oberhofer-h Austrian Institute of Economic Research (WIFO) Phone: +43/1/7982601-468 Email: harald.oberhofer@wifo.ac.at<mailto:harald.oberhofer@wifo.ac.at> http://www.wifo.ac.at/harald_oberhofer