Car owners in Germany are underestimating the monthly costs of their vehicles by an average of 50%, according to a study by the RWI – Leibniz Institute for Economic Research, the University of Mannheim, and Yale University, funded by the Mercator Foundation. The study, published in the journal Nature, found that the 5,483 participants underestimated the costs of insurance, taxes, repairs, and depreciation, with only fuel costs being accurately estimated. The researchers used data from the ADAC for comparison. The study also examined the impact of greater cost transparency on private car ownership, finding that if consumers were aware of the full costs, 37% fewer cars would be on the road in Germany, reducing CO2 emissions by 37 million tonnes per year. The study also found that electric cars would become more attractive, with demand potentially rising by 73%, while public transport use would increase by 8-12%.
The study highlights the importance of cost transparency in encouraging the use of alternative transport modes and reducing private car ownership. The researchers suggest that greater awareness of the true costs of car ownership could lead to a significant reduction in CO2 emissions, with a shift towards public transport, cycling, and car-sharing. The study also suggests that electric cars could become more popular if their lower costs were more widely understood. The findings have implications for policymakers and car manufacturers, who may need to consider how to promote greater cost transparency and encourage the use of alternative transport modes. The study also highlights the need for greater public education on the true costs of car ownership, and the potential benefits of alternative transport modes.
