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Automobile Externalities and Policies

  • Ian W. H. Parry
  • Margaret Walls
  • Winston Harrington

This paper discusses the nature, and magnitude, of externalities associated with automobile use, including local and global pollution, oil dependence, traffic congestion and traffic accidents. It then discusses current federal policies affecting these externalities, including fuel taxes, fuel economy and emissions standards, and alternative fuel policies, summarizing, insofar as possible, the welfare effects of those policies. Finally, we discuss emerging pricing policies, including congestion tolls, and insurance reform, and summarize the appropriate combination of policies to address automobile externalities.

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jel.45.2.373
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Article provided by American Economic Association in its journal Journal of Economic Literature.

Volume (Year): 45 (2007)
Issue (Month): 2 (June)
Pages: 373-399

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Handle: RePEc:aea:jeclit:v:45:y:2007:i:2:p:373-399
Note: DOI: 10.1257/jel.45.2.373
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