Work detail

Impacts of a scrappage program: The case of the Czech Republic

Author: Bc. Pavel Korba
Year: 2012 - summer
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Consultants:
Work type: Bachelors
Language: Czech
Pages: 83
Awards and prizes:
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Abstract: In this thesis we are analyzing impacts of scrapping programs on production of personal
cars in the Czech Republic. The scrappage scheme was introduced in thirteen
states of the European Union as a possible solution to decline of demand for new personal
cars in 2008 and 2009 as a consequence of economic crisis. The scrappage scheme
has not been introduced in the Czech Republic, even though the law permitting this
scheme has been passed. The first chapter introduces a scrapping scheme in general,
compares advantages and disadvantages and connects a scrapping scheme with
the automotive industry of the Czech Republic. Furthermore, the position of Czech
producers on domestic and European market is studied in this chapter. The second
chapter concerns scrapping schemes in particular states of the European Union. We
analyze the change of deliveries of producers to customers in particular states using
data provided by these producers. In the third chapter an econometric analysis is
used to identify main determinants of the demand for new personal cars and these
determinants are compared with results from previous studies. The expected change
of demand for new personal cars as a consequence of scrapping scheme is based on
these determinants estimated and the impacts of this expected change on particular
producers are studied. The results are summarized at the end of the thesis.
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