Advanced Search
MyIDEAS: Login

Impact Analysis on Gasoline Demand and CO2 Emissions of the Reduction in Expressway Toll, Free Expressways and Repeal of Temporary Tax on Gasoline

Contents:

Author Info

  • Akira Yanagisawa

    (The Institute of Energy Economics, Japan)

Registered author(s):

    Abstract

    The toll on expressways is reduced as one of the economic stimulation packages of the Japanese government. The effect, however, is disputable. There are two competing views on the effect on gasoline demand and carbon dioxide (CO2) emissions, which is related to climate change. One is that this measure increases gasoline demand and CO2 emissions and another is that this measure decreases them. In this paper, the effect on gasoline demand and CO2 emissions of the reduction in expressways toll is analysed quantitatively using a gasoline demand model. Additionally, the effect on gasoline demand and CO2 emissions by free expressways and by a repeal of the temporary taxes on gasoline is estimated. The current reduction in expressways toll may seem not to lead to significant increase in gasoline demand due to the recession. It, however, is estimated that the reduction in toll actually increases gasoline demand by about 1.3% (0.8 GL per year, or 1.8 Mt of CO2 per year). If expressways become free of charge, gasoline demand is estimated to increase by about 7.2% (4.1 GL per year, or 9.6 Mt of CO2 per year). If the temporary taxes on gasoline are repealed and the taxes are reduced to the principal rates, gasoline demand is estimated to increase by about 3.1% (1.8 GL per year, or 4.1 Mt of CO2 per year). If both of these two measures are enforced, gasoline demand is estimated to increase by about 10.5% (6.0 GL per year, or 14 Mt of CO2 per year). In this case, CO2 emissions from the transport passenger sector are estimated to increase by about 10 Mt - 14 Mt depending on how much traffic will be shifted to passenger cars from other modes. This is equivalent to an increase of about 0.8% - 1.1% of Japans all greenhouse gases emission in the base year of the Kyoto Protocol (1990). Launch of consistent policies toward reduction of greenhouse gases emissions is more important now as the very severe emission target, reduction by 25% from 1990 level, has been announced even being premised on the formulation of a fair and effective international framework by all major economies and agreement on their ambitious targets.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://saber.eaber.org/node/22985
    Download Restriction: no

    Bibliographic Info

    Paper provided by East Asian Bureau of Economic Research in its series Energy Working Papers with number 22985.

    as in new window
    Length:
    Date of creation: Jan 2009
    Date of revision:
    Handle: RePEc:eab:energy:22985

    Contact details of provider:
    Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
    Web page: http://www.eaber.org
    More information through EDIRC

    Related research

    Keywords: gasoline demand; carbon dioxide emissions; emissions target; international framework;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eab:energy:22985. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shiro Armstrong).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.