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A system of tradable CO2 permits applied to fuel consumption by motorists

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  • Raux, Charles
  • Marlot, Grégoire

Abstract

Decentralized transferable permit systems in the transport sector can be of interest with regard to reducing greenhouse gas emissions, in spite of anticipated transaction costs. This paper describes a potential application of a domestic market for car fuel consumption permits. The marginal costs of consumption reduction vary sufficiently according to motorists' residential locations to consider permit exchanges. Economic evaluation of this system shows that there are transfers of surplus between the various groups of motorists according to their residential locations. The central government may lose significant revenues when compared with a conventional fuel tax. Lastly, the issue of transaction costs, the benefits and disadvantages in terms of social acceptability and equity are discussed.

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Bibliographic Info

Article provided by Elsevier in its journal Transport Policy.

Volume (Year): 12 (2005)
Issue (Month): 3 (May)
Pages: 255-265

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Handle: RePEc:eee:trapol:v:12:y:2005:i:3:p:255-265

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References

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  1. Charles Raux, 2004. "The Use of Transferable Permits in Transport Policy," Post-Print halshs-00067895, HAL.
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Citations

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Cited by:
  1. Ch'ng, Kean Siang, 2010. "Individual tradable permit market and traffic congestion: An experimental study," MPRA Paper 26638, University Library of Munich, Germany.
  2. Fan, Wenbo & Jiang, Xinguo, 2013. "Tradable mobility permits in roadway capacity allocation: Review and appraisal," Transport Policy, Elsevier, vol. 30(C), pages 132-142.
  3. McNamara, David & Caulfield, Brian, 2011. "Measuring the potential implications of introducing a cap and share scheme in Ireland to reduce green house gas emissions," Transport Policy, Elsevier, vol. 18(4), pages 579-586, August.
  4. Bulteau, Julie, 2012. "Tradable emission permit system for urban motorists: The neo-classical standard model revisited," Research in Transportation Economics, Elsevier, vol. 36(1), pages 101-109.
  5. Charles Raux, 2007. "Réduire les émissions de CO2 dans le transport : un marché de permis pour les automobilistes et le frêt," Post-Print halshs-00204023, HAL.
  6. Christian Flachsland & Steffen Brunner & Ottmar Edenhofer & Felix Creutzig, 2010. "Climate policies for road transport revisited (II): Closing the policy gap with cap-and-trade," Working Papers 2, Department of Climate Change Economics, TU Berlin.
  7. Harwatt, Helen & Tight, Miles & Bristow, Abigail L. & Gühnemann, Astrid, 2011. "Personal carbon trading and fuel price increases in the transport sector: an exploratory study of public response in the UK," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 47, pages 47-70.
  8. Wang, Xiaolei & Yang, Hai & Zhu, Daoli & Li, Changmin, 2012. "Tradable travel credits for congestion management with heterogeneous users," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 426-437.
  9. Santos, Georgina & Behrendt, Hannah & Maconi, Laura & Shirvani, Tara & Teytelboym, Alexander, 2010. "Part I: Externalities and economic policies in road transport," Research in Transportation Economics, Elsevier, vol. 28(1), pages 2-45.
  10. Yang, Hai & Wang, Xiaolei, 2011. "Managing network mobility with tradable credits," Transportation Research Part B: Methodological, Elsevier, vol. 45(3), pages 580-594, March.
  11. Wadud, Zia, 2011. "Personal tradable carbon permits for road transport: Why, why not and who wins?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(10), pages 1052-1065.

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