Car Use, Company Car Arrangements and Wage Systems, 1998

The project had four primary objectives. 1. Increase the knowledge concerning magnitude, distribution and nature of company car arrangements and corporate subsidies for employee car use, as well as decisions concerning these programs. 2. Analyse how company cars and car allowances are incorporated in the aggregated compensation of various employee groups. 3. Analyse how motorists will react to alterations in the framework concerning car use. 4. Suggest changes in the tax policies of the state concerning car allowances and the regulation of company cars with the aim of increased cohesion between the private costs and the societal costs of car use. One of the potential problems with current transportation policies is that some do not pay the societal costs of their own transportation choices. Thus, it is interesting to evaluate the magnitude and nature of programs that may contribute to the discrepancies between private- and societal costs, such as company car programs and car allowances. The study found that company car programs primarily benefit men. Like other benefits, company cars and car allowances are positively related to income and fortune. Car programs are utilized more frequently in urban areas. It was also discovered that employees with car programs drive more in their vocation and privately. Furthermore, ¼ of beneficiaries claimed they would drive less if they were taxed for private car use.