This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Fiscal policy instruments for reducing congestion and atmospheric emissions in the transport sector : a review

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Timilsina, Govinda R.
Dulal, Hari B.

Additional information is available for the following registered author(s):

Abstract

This paper reviews the literature on the fiscal policy instruments commonly used to reduce transport sector externalities. The findings show that congestion charges would reduce vehicle traffic by 9 to 12 percent and significantly improve environmental quality. The vehicle tax literature suggests that every 1 percent increase in vehicle taxes would reduce vehicle miles by 0.22 to 0.45 percent and CO2 emissions by 0.19 percent. The fuel tax is the most common fiscal policy instrument; however its primary objective is to raise government revenues rather than to reduce emissions and traffic congestion. Although subsidizing public transportation is a commonpractice, reducing emissions has not been the primary objective of such subsidies. Nevertheless, it is shown that transport sector emissions would be higher in the absence of both public transportation subsidies and fuel taxation. Subsidies are also the main policy tool for the promotion of clean fuels and vehicles. Although some studies are very critical of biofuel subsidies, the literature is mostly supportive of clean vehicle subsidies.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. 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://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2008/06/20/000158349_20080620143130/Rendered/PDF/wps4652.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4652.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: 01 Jun 2008
Date of revision:
Handle: RePEc:wbk:wbrwps:4652

Contact details of provider:
Postal: 1818 H Street, N.W., Washington, DC 20433
Email:
Web page: http://www.worldbank.org/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Roula I. Yazigi).

Related research
Keywords: Transport Economics Policy&Planning; Environmental Economics&Policies; Transport and Environment; Taxation&Subsidies; Transport in Urban Areas;

Other versions of this item:

This paper has been announced in the following NEP Reports: References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Eskeland, Gunnar S & Jimenez, Emmanuel, 1992. "Policy Instruments for Pollution Control in Developing Countries," World Bank Research Observer, Oxford University Press, vol. 7(2), pages 145-69, July.
  2. Richard Arnott & Marvin Kraus, 2003. "Transport Economics," Boston College Working Papers in Economics 553, Boston College Department of Economics. [Downloadable!]
  3. West, Sarah E., 2004. "Distributional effects of alternative vehicle pollution control policies," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 735-757, March. [Downloadable!] (restricted)
  4. Weitzman, Martin L., 1974. "Free access vs private ownership as alternative systems for managing common property," Journal of Economic Theory, Elsevier, vol. 8(2), pages 225-234, June. [Downloadable!] (restricted)
  5. Rietveld, Piet & van Woudenberg, Stefan, 2005. "Why fuel prices differ," Energy Economics, Elsevier, vol. 27(1), pages 79-92, January. [Downloadable!] (restricted)
  6. Stephen Potter & Graham Parkhurst, 2005. "Transport Policy and Transport Tax Reform," Public Money & Management, Chartered Institute of Public Finance and Accountancy, vol. 25(3), pages 171-178, 06. [Downloadable!] (restricted)
  7. Antonio M. Bento & Lawrence H. Goulder & Emeric Henry & Mark R. Jacobsen & Roger H. von Haefen, 2005. "Distributional and Efficiency Impacts of Gasoline Taxes: An Econometrically Based Multi-market Study," American Economic Review, American Economic Association, vol. 95(2), pages 282-287, May. [Downloadable!]
  8. Eliasson, Jonas & Mattsson, Lars-Göran, 2006. "Equity effects of congestion pricing: Quantitative methodology and a case study for Stockholm," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(7), pages 602-620, August. [Downloadable!] (restricted)
  9. Rich, Jeppe & Nielsen, Otto Anker, 2007. "A socio-economic assessment of proposed road user charging schemes in Copenhagen," Transport Policy, Elsevier, vol. 14(4), pages 330-345, July. [Downloadable!] (restricted)
  10. Parry, Ian W. H. & Bento, Antonio, 2002. "Estimating the Welfare Effect of Congestion Taxes: The Critical Importance of Other Distortions within the Transport System," Journal of Urban Economics, Elsevier, vol. 51(2), pages 339-365, March. [Downloadable!] (restricted)
    Other versions:
  11. Kraus, Marvin, 1981. "Scale economies analysis for urban highway networks," Journal of Urban Economics, Elsevier, vol. 9(1), pages 1-22, January. [Downloadable!] (restricted)
  12. Sterner, Thomas, 2007. "Fuel taxes: An important instrument for climate policy," Energy Policy, Elsevier, vol. 35(6), pages 3194-3202, June. [Downloadable!] (restricted)
  13. Johnstone, N. & Karousakis, K., 1999. "Economic incentives to reduce pollution from road transport: the case for vehicle characteristics taxes," Transport Policy, Elsevier, vol. 6(2), pages 99-108, April. [Downloadable!] (restricted)
  14. Stiglitz, Joseph, 1998. "Distinguished Lecture on Economics in Government: The Private Uses of Public Interests: Incentives and Institutions," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 3-22, Spring. [Downloadable!] (restricted)
  15. Santos, Georgina & Li, Wai Wing & Koh, Winston T.H, 2004. "9. Transport Policies In Singapore," Research in Transportation Economics, Elsevier, vol. 9(1), pages 209-235, January. [Downloadable!] (restricted)
  16. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-60, May. [Downloadable!] (restricted)
  17. De Borger, Bruno & Mayeres, Inge, 2007. "Optimal taxation of car ownership, car use and public transport: Insights derived from a discrete choice numerical optimization model," European Economic Review, Elsevier, vol. 51(5), pages 1177-1204, July. [Downloadable!] (restricted)
  18. Faiz, Asif & Sinha, Kumares & Walsh, Michael & Varma, Amiy, 1990. "Automotive air pollution : issues and options for developing countries," Policy Research Working Paper Series 492, The World Bank. [Downloadable!]
  19. Gakenheimer, Ralph, 1999. "Urban mobility in the developing world," Transportation Research Part A: Policy and Practice, Elsevier, vol. 33(7-8), pages 671-689. [Downloadable!] (restricted)
  20. Keiko Hirota & Jacques Poot, 2003. "Do policy incentives affect the environmental impact of private car use? Evidence from a sample of large cities," ERSA conference papers ersa03p493, European Regional Science Association. [Downloadable!]
  21. Schmöcker, Jan-Dirk & Fonzone, Achille & Quddus, Mohammed & Bell, Michael G.H., 2006. "Changes in the frequency of shopping trips in response to a congestion charge," Transport Policy, Elsevier, vol. 13(3), pages 217-228, May. [Downloadable!] (restricted)
  22. Bonnel, Patrick, 1995. "Urban car policy in Europe," Transport Policy, Elsevier, vol. 2(2), pages 83-95, April. [Downloadable!] (restricted)
  23. Palma, André de & Lindsey, Robin & Proost, Stef, 2006. "Research challenges in modelling urban road pricing: An overview," Transport Policy, Elsevier, vol. 13(2), pages 97-105, March. [Downloadable!] (restricted)
  24. Lawrence Goulder, 1995. "Environmental taxation and the double dividend: A reader's guide," International Tax and Public Finance, Springer, vol. 2(2), pages 157-183, August. [Downloadable!] (restricted)
  25. Kunert, Uwe & Kuhfeld, Hartmut, 2007. "The diverse structures of passenger car taxation in Europe and the EU Commissions proposal for reform," Transport Policy, Elsevier, vol. 14(4), pages 306-316, July. [Downloadable!] (restricted)
    Other versions:
  26. Cropper, Maureen & Bhattacharya, Soma, 2007. "Public transport subsidies and affordability in Mumbai, India," Policy Research Working Paper Series 4395, The World Bank. [Downloadable!]
  27. Arthur M. Wiese & Adam Rose & Gerald Schluter, 1995. "Motor-Fuel Taxes and Household Welfare: An Applied General Equilibrium Analysis," Land Economics, University of Wisconsin Press, vol. 71(2), pages 229-242. [Downloadable!] (restricted)
  28. Prud'homme, Rémy & Bocarejo, Juan Pablo, 2005. "The London congestion charge: a tentative economic appraisal," Transport Policy, Elsevier, vol. 12(3), pages 279-287, May. [Downloadable!] (restricted)
  29. Parry, Ian W. H. & Williams, Roberton III & Goulder, Lawrence H., 1999. "When Can Carbon Abatement Policies Increase Welfare? The Fundamental Role of Distorted Factor Markets," Journal of Environmental Economics and Management, Elsevier, vol. 37(1), pages 52-84, January. [Downloadable!] (restricted)
    Other versions:
  30. Speck, Stefan, 1999. "Energy and carbon taxes and their distributional implications," Energy Policy, Elsevier, vol. 27(11), pages 659-667, October. [Downloadable!] (restricted)
  31. Richard Arnott & Andre de Palma & Robin Lindsey, 1993. "The Welfare Effects Of Congestion Tolls With Heterogeneous Commuters," Boston College Working Papers in Economics 231, Boston College Department of Economics.
Full references

Statistics
Access and download statistics

Did you know? About five million pdf files are downloaded through RePEc every year.

This page was last updated on 2009-11-26.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.