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Regulatory instruments to control environmental externalities from the transport sector

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  • Timilsina, Govinda R.
  • Dulal, Hari B.

Abstract

This study reviews regulatory instruments designed to reduce environmental externalities from the transport sector. We find that the main regulatory instruments used in practice are fuel economy standards, vehicle emission standards and fuel quality standards. While industrialized countries have introduced all three standards with strong enforcement mechanisms, most developing countries have yet to introduce fuel economy standards. The emission standards introduced by many developing countries to control local air pollutants follow either the EU or U.S. standards. Fuel quality standards, particularly for gasoline and diesel, have been introduced in many countries mandating 2 to 10 percent blending of biofuels, 10 to 50 times reduction of sulfur from 1996 levels and banning lead contents. Although inspection and maintenance (I/M) programs are in place in both industrialized and developing countries to enforce regulatory standards, these programs have faced several challenges in developing countries due to a lack of resources. The study also highlights several factors affecting the selection of regulatory instruments, such as countries’ environmental priorities and institutional capacities.

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File URL: http://hdl.handle.net/10077/6061
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Bibliographic Info

Article provided by ISTIEE, Institute for the Study of Transport within the European Economic Integration in its journal European Transport / Trasporti Europei.

Volume (Year): (2009)
Issue (Month): 41 ()
Pages: 80-112

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Handle: RePEc:sot:journl:y:2009:i:41:p:80-112

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Related research

Keywords: Transport sector externalities; Emissions; Regulatory policy instruments;

References

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  1. Austin, David & Dinan, Terry, 2005. "Clearing the air: The costs and consequences of higher CAFE standards and increased gasoline taxes," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 562-582, November.
  2. Scholl, Lynn & Schipper, Lee & Kiang, Nancy, 1996. "CO2 emissions from passenger transport : A comparison of international trends from 1973 to 1992," Energy Policy, Elsevier, vol. 24(1), pages 17-30, January.
  3. Proost, Stef & Van Dender, Kurt, 2001. "The welfare impacts of alternative policies to address atmospheric pollution in urban road transport," Regional Science and Urban Economics, Elsevier, vol. 31(4), pages 383-411, July.
  4. Greene, David L, 1998. "Why CAFE worked," Energy Policy, Elsevier, vol. 26(8), pages 595-613, July.
  5. Fischer, Carolyn, 2008. "Comparing flexibility mechanisms for fuel economy standards," Energy Policy, Elsevier, vol. 36(8), pages 3106-3114, August.
  6. Bezdek, Roger H. & Wendling, Robert M., 2005. "Potential long-term impacts of changes in US vehicle fuel efficiency standards," Energy Policy, Elsevier, vol. 33(3), pages 407-419, February.
  7. Zachariadis, Theodoros, 2006. "On the baseline evolution of automobile fuel economy in Europe," Energy Policy, Elsevier, vol. 34(14), pages 1773-1785, September.
  8. Harrington, Winston, 1997. "Fuel Economy and Motor Vehicle Emissions," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 240-252, July.
  9. de Palma, Andre & Kilani, Moez, 2008. "Regulation in the automobile industry," International Journal of Industrial Organization, Elsevier, vol. 26(1), pages 150-167, January.
  10. Bonnel, Patrick, 1995. "Urban car policy in Europe," Transport Policy, Elsevier, vol. 2(2), pages 83-95, April.
  11. Dowlatabadi, Hadi & Lave, Lester B & Russell, Armistead G, 1996. "A free lunch at higher CAFE? A review of economic, environmental and social benefits," Energy Policy, Elsevier, vol. 24(3), pages 253-264, March.
  12. A. Greening, Lorna & Greene, David L. & Difiglio, Carmen, 2000. "Energy efficiency and consumption -- the rebound effect -- a survey," Energy Policy, Elsevier, vol. 28(6-7), pages 389-401, June.
  13. Dargay, Joyce & Gately, Dermot, 1997. "Vehicle ownership to 2015: Implications for energy use and emissions," Energy Policy, Elsevier, vol. 25(14-15), pages 1121-1127, December.
  14. Kirby, Eric G, 1995. "An evaluation of the effectiveness of US CAFE policy," Energy Policy, Elsevier, vol. 23(2), pages 107-109, February.
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Cited by:
  1. David Anthoff & Robert Hahn, 2010. "Government failure and market failure: on the inefficiency of environmental and energy policy," Oxford Review of Economic Policy, Oxford University Press, vol. 26(2), pages 197-224, Summer.
  2. Richard Perkins & Eric Neumayer, 2012. "Does the ‘California effect’ operate across borders? trading- and investing-up in automobile emission standards," LSE Research Online Documents on Economics 42097, London School of Economics and Political Science, LSE Library.

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