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The Use of Transferable Permits in the Transport Sector


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  • Charles Raux

    (LET - Laboratoire d'économie des transports - CNRS : UMR5593 - Université Lumière - Lyon II - Ecole Nationale des Travaux Publics de l'Etat)


This report focuses on the potential use of domestic transferable permit (TPs) systems in the transport sector, in order to address the issue of mobility needs management and especially the reductions of airborne pollution and greenhouse gas emissions. Firstly the context of the transport sector is briefly reviewed, the main arguments for or against the use of TPs in the sector are analysed and relevant areas are identified. Secondly four case studies of past, present or possible future permits systems are presented and evaluated. The main conclusions are: TPs applied to mobile sources are technically feasible at acceptable financial costs for protecting sensitive geographic areas. TPs schemes applied to automakers for unit vehicle emissions are also viable. Clarity, simplicity in target and pragmatism in scheme design help for their success. Regarding the broader GHG issue end-user TPs would currently involve significant administrative costs when compared with fuel tax system. Given the social resistance encountered by increase in fuel taxes in several countries, end-user TPs with free allocation may intrinsically have potential greater effectiveness and acceptance and should be thoroughly evaluated case-by-case as an alternative.

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Bibliographic Info

Paper provided by HAL in its series Post-Print with number halshs-00080454.

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Date of creation: 2002
Date of revision:
Publication status: Published, Implementing Domestic Tradeable Permits. Recent Developments and Future Challenges, OECD (Ed.), 2002, pp. 141-185
Handle: RePEc:hal:journl:halshs-00080454

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Keywords: Domestic transferable permits ; Emissions reduction ; Mobile sources ; Transport Sector;


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  1. E Verhoef & P Nijkamp & P Rietveld, 1997. "Tradeable permits: their potential in the regulation of road transport externalities," Environment and Planning B: Planning and Design, Pion Ltd, London, Pion Ltd, London, vol. 24(4), pages 527-548, July.
  2. Onursal, B. & Gautam, S.P., 1997. "Vehicular Air Pollution: Experiences from Seven Latin American Urban Centers," Papers, World Bank - Technical Papers 373, World Bank - Technical Papers.
  3. Rubin Jonathan & Kling Catherine, 1993. "An Emission Saved Is an Emission Earned: An Empirical Study of Emission Banking for Light-Duty Vehicle Manufacturers," Journal of Environmental Economics and Management, Elsevier, vol. 25(3), pages 257-274, November.
  4. Kerr, Suzi & Newell, Richard, 2001. "Policy-Induced Technology Adoption: Evidence from the U.S. Lead Phasedown," Discussion Papers, Resources For the Future dp-01-14, Resources For the Future.
  5. Löfgren, Åsa & Hammar, Henrik, 1999. "The Phase-Out of Leaded Gasoline in the EU: A Successful Failure?," Working Papers in Economics, University of Gothenburg, Department of Economics 19, University of Gothenburg, Department of Economics.
  6. Stavins Robert N., 1995. "Transaction Costs and Tradeable Permits," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 133-148, September.
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Cited by:
  1. Fan, Wenbo & Jiang, Xinguo, 2013. "Tradable mobility permits in roadway capacity allocation: Review and appraisal," Transport Policy, Elsevier, vol. 30(C), pages 132-142.
  2. Charles Raux, 2007. "Réduire les émissions de CO2 dans le transport : un marché de permis pour les automobilistes et le frêt," Post-Print, HAL halshs-00204023, HAL.
  3. Darla Hatton MacDonald & Jeffery Connor, 2004. "Market-Based Instruments for Managing Water Quality in New Zealand. Final Report for the New Zealand Ministry for the Environment," Natural Resource Management Economics, Policy and Economic Research Unit, CSIRO Land and Water, Adelaide, Australia 04_003, Policy and Economic Research Unit, CSIRO Land and Water, Adelaide, Australia.


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