The drawbacks and opportunities of carbon charges in metropolitan areas -- A spatial general equilibrium approach
AbstractIn cities there is a variety of economic and spatial forces that may influence to what extent a travel-related CO2 emission pricing can be an effective instrument to contribute to the achievement of CO2 reduction goals. Therefore, we examine the effectiveness and impact of CO2 emission charges using a spatial general equilibrium model of an urban economy, calibrated according to an average German city. Our analyses suggest that the imposition of a Pigouvian type CO2 emission charge on urban passenger travel may be able to reduce emissions by about 1%-11%, depending on the estimated social damage cost of carbon dioxide. Such a policy increases urban welfare mainly on account of a reduction of congestion costs. However, pricing congestion directly not only provides higher urban welfare but also higher emission reductions. Pricing congestion and CO2 emissions simultaneously allows to achieve a wide range of emission reduction goals. If, however, the reduction goal is very ambitious the emission charge must be raised to higher levels. Then, distortions in the urban markets and in spatial travel decisions lower labor supply and thus urban production, income of city residents, federal tax revenue, income of landowners outside the city, all together implying losses in welfare.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Ecological Economics.
Volume (Year): 70 (2010)
Issue (Month): 2 (December)
Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolecon
Urban general equilibrium model Climate policy Transport policy CO2 emissions Externalities;
Find related papers by JEL classification:
- Urb - - - - - -
- gen - - - - - -
- equ - - - - - -
- mod - - - - - -
- Cli - Mathematical and Quantitative Methods - - - - -
- pol - - - - - -
- Tra - - - - - -
- pol - - - - - -
- CO2 - Mathematical and Quantitative Methods - - - - -
- emi - - - - - -
- Ext - Macroeconomics and Monetary Economics - - - - -
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Georg Hirte & Stefan Tscharaktschiew, 2011.
"Income tax deduction of commuting expenses and tax funding in an urban CGE study: the case of German cities,"
ERSA conference papers
ersa11p274, European Regional Science Association.
- Hirte, Georg & Tscharaktschiew, Stefan, 2011. "Income tax deduction of commuting expenses and tax funding in an urban CGE study: the case of German cities," Dresden Discussion Paper Series in Economics 02/11, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
- Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
- Hirte, Georg & Tscharaktschiew, Stefan, 2013. "The optimal subsidy on electric vehicles in German metropolitan areas: A spatial general equilibrium analysis," Energy Economics, Elsevier, vol. 40(C), pages 515-528.
- Tscharaktschiew, Stefan & Hirte, Georg, 2011.
"Should subsidies to urban passenger transport be increased? A spatial CGE analysis for a German metropolitan area,"
Dresden Discussion Paper Series in Economics
01/11, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
- Tscharaktschiew, Stefan & Hirte, Georg, 2012. "Should subsidies to urban passenger transport be increased? A spatial CGE analysis for a German metropolitan area," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(2), pages 285-309.
- Hirte, Georg & Tscharaktschiew, Stefan, 2013. "Income tax deduction of commuting expenses in an urban CGE study: The case of German cities," Transport Policy, Elsevier, vol. 28(C), pages 11-27.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.