Reducing energy consumption in road transport through hybrid vehicles: investigation of rebound effects, and possible effects of tax rebates

Hybrid powertrains are considered to be a promising method to raise the overall fuel efficiency of passenger cars. They are predicted to enter the automobile markets in increasing numbers in the near future. This paper investigates 2 aspects relevant to the promotion of hybrid vehicles as part of an energy reduction strategy. First, are hybrid cars accompanied by rebound effects, which counteract their increased fuel efficiency? Second, do tax rebates indeed lead to higher sales numbers? We present results from a survey conducted with all 367 buyers of hybrid second-generation Toyota Prius in Switzerland in the first 9 months after market entry (response rate, 82.6%). As control group, questionnaires were also sent to 250 Toyota Corolla (61% returned) and 250 Toyota Avensis (52%) buyers. Among other items, the surveys asked for the car being replaced, if any. Main results are that the increase in car size for hybrid car buyers was lower than both, the market trend and the control group. Increase in car size was lower for hybrid car buyers than for both control group and market trend. 6% of hybrid car purchases did not replace a previously owned vehicle (control group 3%, P = 0.05), the Swiss market average being 20%. Hence rebound effects could be identified neither for vehicle size nor for vehicle ownership. As an energy policy measure, hybrid vehicles are eligible for tax rebates in parts of Switzerland. We found evidence that these tax rebates indeed lead to significant higher sales. We present a rough cost estimate of such tax rebates as CO2 abatement policy tool.