A major focus of concern about the environment and the prospects for sustainable development is the transport sector. This sector has been growing rapidly, and growth is forecast to continue. Moreover, transport’s environmental consequences often appear to be difficult to control. In particular, transport is the fastest-growing contributor to greenhouse gas emissions in the UK, especially through the growth in road traffic. There is also concern about the health consequences of more localised emissions. In this paper, we review the impact of the sector on atmospheric pollution, and consider the alternative impacts of the different policy instruments available. The paper models the impact on passenger transport of the fiscal instruments adopted by the government, and contrasts them with alternative policies that have been advocated.
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Article provided by Institute for Fiscal Studies in its journal Fiscal Studies.
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