Economic Instruments - Subsidies

Car and Appliance Incentives (Italy)

 

 

 

 

Background

 

Italy has on average the oldest cars on the road in European Union and more than 15 million vehicles will be eligible for the incentives

 

 

Design

 

Italy is to offer rebates and incentives worth as much as €2 billion to spur the purchase of cleaner cars and energy-efficient appliances (Bloomberg, 2009).

 

 

Scope

 

Consumers trading in cars older than 10 years for newer, less polluting models will be eligible for a €1,500 rebate. Italians trading in for the cleanest cars that run on electricity or liquefied petroleum gas can get more incentives. The measures include rebates of €2,500 euros for trading in a commercial vehicle or light truck and payments of €500 euros for the trade-ins of some motorcycles and aid to spur spending on home improvements. The government plans to offer tax breaks on the purchase of energy-efficient appliances and spending on home remodeling aimed at saving energy.

 

 

Expectations

 

The incentives could add as much a 1 percentage point to gross domestic product before they expire at the end of this year, he said.

 

 

References

 

Bloomberg, 2009. Italy Offers EU2 Billion in Car, Appliance Incentives. http://www.bloomberg.com/apps/news?pid=20601092&sid=av5GEyM6W3A4

 

on 15/04/09

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