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Accelerating the transformation to a low carbon passenger transport system: The role of car purchase taxes, feebates, road taxes and scrappage incentives in the UK

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  • Brand, Christian
  • Anable, Jillian
  • Tran, Martino

Abstract

The transition to a low carbon transport world requires a host of demand and supply policies to be developed and deployed. Pricing and taxation of vehicle ownership plays a major role, as it affects purchasing behavior, overall ownership and use of vehicles. There is a lack in robust assessments of the life cycle energy and environmental effects of a number of key car pricing and taxation instruments, including graded purchase taxes, vehicle excise duties and vehicle scrappage incentives. This paper aims to fill this gap by exploring which type of vehicle taxation accelerates fuel, technology and purchasing behavioral transitions the fastest with (i) most tailpipe and life cycle greenhouse gas emissions savings, (ii) potential revenue neutrality for the Treasury and (iii) no adverse effects on car ownership and use.

Suggested Citation

  • Brand, Christian & Anable, Jillian & Tran, Martino, 2013. "Accelerating the transformation to a low carbon passenger transport system: The role of car purchase taxes, feebates, road taxes and scrappage incentives in the UK," Transportation Research Part A: Policy and Practice, Elsevier, vol. 49(C), pages 132-148.
    • Handle: RePEc:eee:transa:v:49:y:2013:i:c:p:132-148
    DOI: 10.1016/j.tra.2013.01.010
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