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International fuel tax assessment: an application to Chile

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  • Parry, Ian
  • Strand, Jon

Abstract

Gasoline and diesel fuel are heavily taxed in many developed and some emerging and developing countries. Outside the United States and Europe, however, there has been little attempt to quantify the external costs of vehicle use, so policy makers lack guidance on whether prevailing tax rates are economically efficient. This paper develops a general approach for estimating motor vehicle externalities, and hence corrective taxes on gasoline and diesel, based on pooling local data with extrapolations from US evidence. The analysis is illustrated for the case of Chile, although it could be applied to other countries.

Suggested Citation

  • Parry, Ian & Strand, Jon, 2012. "International fuel tax assessment: an application to Chile," Environment and Development Economics, Cambridge University Press, vol. 17(02), pages 127-144, April.
  • Handle: RePEc:cup:endeec:v:17:y:2012:i:02:p:127-144_00
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Antón-Sarabia, Arturo & Hernández-Trillo, Fausto, 2014. "Optimal gasoline tax in developing, oil-producing countries: The case of Mexico," Energy Policy, Elsevier, vol. 67(C), pages 564-571.
    2. Parry, Ian W.H., 2012. "Reforming the tax system to promote environmental objectives: An application to Mauritius," Ecological Economics, Elsevier, vol. 77(C), pages 103-112.
    3. Rizzi, Luis Ignacio & De La Maza, Cristobal, 2017. "The external costs of private versus public road transport in the Metropolitan Area of Santiago, Chile," Transportation Research Part A: Policy and Practice, Elsevier, vol. 98(C), pages 123-140.
    4. Hernán Barahona & Francisco Gallego & Jeanne Juan-Pablo Montero, 2016. "Adopting a Cleaner Technology: The Effect of Driving Restrictions on Fleet Turnover," Working Papers ClioLab 24, EH Clio Lab. Instituto de Economía. Pontificia Universidad Católica de Chile.
    5. Benjamin Jones & Michael Keen & Jon Strand, 2013. "Fiscal implications of climate change," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(1), pages 29-70, February.
    6. repec:taf:jdevst:v:53:y:2017:i:4:p:465-480 is not listed on IDEAS
    7. Nano Barahona & Francisco Gallego & Juan-Pablo Montero, 2018. "Vintage-specific driving restrictions," DOUMENTOS DE TRABAJO LACEA 016259, THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION - LACEA.
    8. Navajas, Fernando H. & Panadeiros, Monica & Natale, Oscar, 2011. "Environmentally Related Energy Taxes in Argentina, Bolivia and Uruguay," MPRA Paper 37829, University Library of Munich, Germany.
    9. Santos, Georgina, 2017. "Road fuel taxes in Europe: Do they internalize road transport externalities?," Transport Policy, Elsevier, vol. 53(C), pages 120-134.
    10. Claudia N. Berg & Uwe Deichmann & Yishen Liu & Harris Selod, 2017. "Transport Policies and Development," Journal of Development Studies, Taylor & Francis Journals, vol. 53(4), pages 465-480, April.
    11. Seedah, Dan P.K. & Muckelston, Joshua C. & Harrison, Robert, 2013. "Truck Use on Texas Toll Roads," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 52(1).
    12. repec:eee:resene:v:50:y:2017:i:c:p:135-163 is not listed on IDEAS

    More about this item

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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