All policies / Transport / IRL_P0019
Vehicle Registration Tax and Motor Tax Rebalancing
Instrument affecting the Transport sector, using a pricing mechanism; reported 2008–2020.
About this policy
The Vehicle Registration Tax (VRT) and Motor Tax Rebalancing measure implemented in 2008 was a policy initiative introduced by the Irish government to encourage the purchase of low-emission vehicles and discourage the use of high-emission vehicles. The measure involved adjusting the tax rates for vehicle registration and motor tax based on the carbon dioxide (CO2) emissions produced by the vehicle. Vehicles with lower CO2 emissions were subject to reduced tax rates, while those with higher emissions faced higher taxes. This PaM expired in 2020.
Key milestones
- 2008Vehicle registration tax and annual motor tax for new cars rebased on CO₂ emission bands (July).
Contextual milestones compiled from official sources. They are not used in the index.
About this type of instrument: carbon pricing: taxes and emissions trading
Emissions impose an external cost that market prices do not reflect. A single carbon price corrects this. Each emitter cuts emissions wherever doing so costs less than the price. So the overall cut is achieved at the lowest total cost. It also rewards continuing innovation.
- Cost-effective allocation of abatement across emitters
- Continuous incentive to innovate
- Generates revenue that can offset distributional effects
- Historical price levels were low relative to estimated social costs
- Exemptions and free allocation weaken the signal
- Short-run demand for fuels is price-inelastic
- Regressive effects unless revenue is recycled
Measurement in this dataset. Implementation uses OECD price indicators (carbon-tax rate by sector, ETS price, aviation pricing). Pricing rows are split into those inside the EU ETS and those outside it (covered by the EU Effort Sharing Regulation, ESR). Bindingness is scored 0.75 (price or statutory obligation).
Year by year
Filled markers use a matched OECD score; hollow markers use assumed timing. Shaded bands show the policy's status. Select a year on the chart or the slider to see how its intensity is built up.
Source records in the EEA registry
All EEA records linked to this policy. Records under the "with additional measures" scenario describe planned extensions; they are retained for traceability but are not treated as historical policy.
| PaM | Name as reported | Status | Scenario | Period | Ex-post kt |
|---|---|---|---|---|---|
| 19 | Vehicle Registration Tax and Motor Tax Rebalancing | Expired | With existing measures | 2008–2020 | 396 |
Data-quality notes
Methodological notes recorded for this series, grouped by theme.
Timing assumptions
- After expiry, a lingering effect is modelled with an assumed half-life.
- Implementation in some years follows an assumed ramp-up because no matching OECD score is available.
Policy-specific notes
- The reported end marks the close of a rebalancing phase, not abolition of the taxes.
Scoring conventions
- The unweighted equal-weight index remains positive before the policy starts; use the gated version for timing analysis.
- Bindingness is a normative score from the study rubric, not a measure of observed compliance.
- Coverage is an ordinal scope score, not a measured share of activity or emissions.
Selection context
- Policies were selected using recent (2024–2030) assessments, which can introduce retrospective selection bias.
Sources
- European Environment Agency. Reporting on national policies and measures, Ireland (report 1849), PaM 19. https://pam.apps.eea.europa.eu/