ANALYSIS OF IMPACT OF REGISTRATION FEE IN THE CZECH REPUBLIC

Abstract

Transport contributes significantly to economic growth, globalization, raising the living standards of all the population, and contributing to a particular country’s development. At the same time, however, it accounts for about one fifth of the total carbon dioxide emissions, causing external effects due to transport, which raises the need to address this issue. It can be said that the older the car is, the more emissions it produces. A tax on motor vehicles can be used to reduce the harmful effects of transport. The Czech Republic has a fairly old fleet, which contributes to a great extent to the deterioration of the environment. In this context, a registration fee was introduced in the Czech Republic based on the vehicle emission parameters. The aim of the fee was to change the fleet structure, in particular to promote new registrations of new passenger cars with better environmental performance, reduce the share of new registrations of used passenger cars and increase the disposal of old cars. This paper focuses on the analysis of the impact of the registration fee on the fleet structure in the Czech Republic. The case study is based on a multinomial regression analysis and statistical analysis of official sources in the Czech Republic. The impact of the registration fee on cars is significant. The number of new registrations of used vehicles is decreasing and the number of discarded old cars is increasing. Despite the positive year-on-year changes, the average age of the fleet remains unfavorable and well above the European average.