Does the Taxation of Motor Vehicles Work? Evidence from Eastern European Countries

Abstract

Taxation represents a unique opportunity for governments to solve multiple problems, economic, social, or environmental. Motor vehicle taxation intends to solve all those problems by incentivizing the taxpayers to make the best decisions for the environment and to use the collected funds to implement multiple policies to solve its intended purpose. Eastern Europe is a special case study because it falls behind compared to Western countries in terms of greenhouse gases and the average state of their motor vehicles.