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The Environmental Consequences of Tax Differentiation by Vehicle Age in Costa Rica

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  • Nick Johnstone
  • Jaime Echeverria
  • Ina Porras
  • Ronald Mejias

Abstract

This paper provides an overview of the potential environmental benefits in Costa Rica of increasing the relative tax rate on imported used cars. Analysis of this policy instrument has been chosen because Costa Rican fiscal policy has traditionally favoured the import of used cars. Moreover, a tax which differentiates between new and used cars can be a good proxy for taxes based directly upon emission levels. The results of the simulation reveal considerable environmental benefits in terms of nitrogen oxides, hydrocarbons and carbon monoxide emissions.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/09640560120087570
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Environmental Planning and Management.

Volume (Year): 44 (2001)
Issue (Month): 6 ()
Pages: 803-814

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Handle: RePEc:taf:jenpmg:v:44:y:2001:i:6:p:803-814

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Cited by:
  1. Blackman, Allen & Osakwe, Rebecca & Alpizar, Francisco, 2009. "Fuel Tax Incidence in Developing Countries: The Case of Costa Rica," Discussion Papers dp-09-37, Resources For the Future.

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