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Tradable emission permit system for urban motorists: The neo-classical standard model revisited

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  • Bulteau, Julie

Abstract

This article deals with the feasibility of a tradable emission permit system (TEPs) for urban motorists. The objective is to develop a new microeconomic theoretical model to reduce urban pollution. We suppose that the city's regulating authority sets up a tradable emission permit system based on the number of kilometres covered by private cars. By the use of a Constant Elasticity of Substitution (CES) function, we determine the equilibrium under an environmental constraint and analyse the effects of a TEPs on social welfare. The aim is to find the optimal quantity of permits leading to the desired environmental objective. The analytical and numerical results of the model show the instrument's feasibility and efficiency. An important variable in the model must be taken into account: the knowledge of environmental damage. This variable will clearly influence the tool's success.

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  • Bulteau, Julie, 2012. "Tradable emission permit system for urban motorists: The neo-classical standard model revisited," Research in Transportation Economics, Elsevier, vol. 36(1), pages 101-109.
    • Handle: RePEc:eee:retrec:v:36:y:2012:i:1:p:101-109
    DOI: 10.1016/j.retrec.2012.03.001
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    References listed on IDEAS

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    Cited by:

    1. Rémy Le Boennec & Julie Bulteau & Thierry Feuillet, 2022. "The role of commuter rail accessibility in the formation of residential land values: exploring spatial heterogeneity in peri-urban and remote areas," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(1), pages 163-186, August.
    2. Fabien Leurent, 2022. "On the ratios of urban mobility, Part 1: the HoTer model of travel demand and network flows," CIRED Working Papers hal-03805030, HAL.
    3. Fabien Leurent, 2022. "On the ratios of urban mobility, Part 1: the HoTer model of travel demand and network flows," Working Papers hal-03805030, HAL.
    4. Kyle Kinler & Jeffrey Wagner, 2014. "Greenness versus safety in vehicle footprint selection," Letters in Spatial and Resource Sciences, Springer, vol. 7(1), pages 35-45, March.
    5. Xu, Meng & Grant-Muller, Susan, 2016. "Trip mode and travel pattern impacts of a Tradable Credits Scheme: A case study of Beijing," Transport Policy, Elsevier, vol. 47(C), pages 72-83.
    6. Julie Bulteau & Thierry Feuillet & Rémy Le Boennec, 2018. "Spatial Heterogeneity of Sustainable Transportation Offer Values: A Comparative Analysis of Nantes Urban and Periurban/Rural Areas (France)," Post-Print halshs-01706911, HAL.

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