Carbon related taxation policies for road transport: Efficacy of ownership and usage taxes, and the role of public transport and motorist cost perception on policy outcomes
Based on an extensively calibrated and methodologically reprogrammed national transport model, this paper evaluates the impacts of recently adopted carbon related transport taxes in Ireland. We find that the fuel based carbon tax reduces CO2 emissions by 1.75–3.82%. The higher band of this reduction range depends on users considering only immediate costs when making trip decisions, and the presence of a strong substitution capacity between public and private transport. Carbon related vehicle registration tax (VRT) and motor (annual road) taxation, however, exhibit little impact on carbon emissions alone and principally support a shift in fleet structure toward diesel and more fuel efficient cars. Over the longer term this shift results in a mild increase in NOx and PM emissions. Overall the study finds that the fuel based carbon tax is better than VRT and motor tax in terms of tax revenue, carbon emission reductions and social welfare, but worse than the latter in terms of household utility and production costs. The greatest CO2 reductions are achieved through a combined policy package of fuel tax and VRT and motor tax changes. The combined impacts of VRT, motor tax and fuel tax on the reduction of CO2 emissions is estimated as 4.29% in 2030, and 4.58% if the elasticities of substitution are improved. The positive combined effects of these policies, in terms of social welfare, can be significantly improved by double-dividend effects, where policymakers replace labour taxes with these new environmental taxes.
Volume (Year): 22 (2012)
Issue (Month): C ()
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/30473/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional|
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.:
- de Jong, Gerard & Gunn, Hugh & Ben-Akiva, Moshe, 2004. "A meta-model for passenger and freight transport in Europe," Transport Policy, Elsevier, vol. 11(4), pages 329-344, October.
- Sterner, Thomas, 2007. "Fuel taxes: An important instrument for climate policy," Energy Policy, Elsevier, vol. 35(6), pages 3194-3202, June.
- N/A, 2009. "World Investment Report 2009: Overview," Foreign Trade Review, , vol. 44(3), pages 81-105, October.
- Proost, Stef & Delhaye, Eef & Nijs, Wouter & Regemorter, Denise Van, 2009. "Will a radical transport pricing reform jeopardize the ambitious EU climate change objectives?," Energy Policy, Elsevier, vol. 37(10), pages 3863-3871, October.
- AfDB AfDB, . "African Development Report 2008/2009," African Development Report, African Development Bank, number 25 edited by Adeleke Oluwole Salami.
- Clinch, J. Peter & Dunne, Louise & Dresner, Simon, 2006. "Environmental and wider implications of political impediments to environmental tax reform," Energy Policy, Elsevier, vol. 34(8), pages 960-970, May.
- Muthukrishnan, Subhashini, 2010. "Vehicle ownership and usage charges," Transport Policy, Elsevier, vol. 17(6), pages 398-408, November.
- Meyer, I. & Wessely, S., 2009. "Fuel efficiency of the Austrian passenger vehicle fleet--Analysis of trends in the technological profile and related impacts on CO2 emissions," Energy Policy, Elsevier, vol. 37(10), pages 3779-3789, October.
- AfDB AfDB, 2009. "MDG Report 2009 - Full Report," MDG Report 99, African Development Bank.
- Gallo, Mariano, 2011. "A fuel surcharge policy for reducing road traffic greenhouse gas emissions," Transport Policy, Elsevier, vol. 18(2), pages 413-424, March.
- Ryan, Lisa & Ferreira, Susana & Convery, Frank, 2009. "The impact of fiscal and other measures on new passenger car sales and CO2 emissions intensity: Evidence from Europe," Energy Economics, Elsevier, vol. 31(3), pages 365-374, May.
- Stanley, John K. & Hensher, David A. & Loader, Chris, 2011. "Road transport and climate change: Stepping off the greenhouse gas," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(10), pages 1020-1030.
- Kunert, Uwe & Kuhfeld, Hartmut, 2007.
"The diverse structures of passenger car taxation in Europe and the EU Commissions proposal for reform,"
Elsevier, vol. 14(4), pages 306-316, July.
- Uwe Kunert & Hartmut Kuhfeld, 2006. "The Diverse Structures of Passenger Car Taxation in Europe and the EU Commissions Proposal for Reform," Discussion Papers of DIW Berlin 589, DIW Berlin, German Institute for Economic Research.
- Fulton, Lew & Cazzola, Pierpaolo & Cuenot, François, 2009. "IEA Mobility Model (MoMo) and its use in the ETP 2008," Energy Policy, Elsevier, vol. 37(10), pages 3758-3768, October.
- Parry, Ian W.H., 2007. "Are the costs of reducing greenhouse gases from passenger vehicles negative?," Journal of Urban Economics, Elsevier, vol. 62(2), pages 273-293, September.
- Parry, Ian W.H., 2006. "Are the Costs of Reducing Greenhouse Gases from Passenger Vehicles Negative?," Discussion Papers dp-06-14-rev, Resources For the Future.
- Brand, Christian & Tran, Martino & Anable, Jillian, 2012. "The UK transport carbon model: An integrated life cycle approach to explore low carbon futures," Energy Policy, Elsevier, vol. 41(C), pages 107-124.
- Hennessy, Hugh & Tol, Richard S.J., 2011. "The impact of tax reform on new car purchases in Ireland," Energy Policy, Elsevier, vol. 39(11), pages 7059-7067.
- Hennessy, Hugh & Tol, Richard S. J., 2010. "The Impact of Tax Reform on New Car Purchases in Ireland," Papers WP349, Economic and Social Research Institute (ESRI).
- Callan, Tim & Lyons, Sean & Scott, Susan & Tol, Richard S.J. & Verde, Stefano, 2009. "The distributional implications of a carbon tax in Ireland," Energy Policy, Elsevier, vol. 37(2), pages 407-412, February.
- Tim Callan & Sean Lyons & Sue Scott & Richard S. J. Tol & Stefano Verde, 2008. "The Distributional Implications of a Carbon Tax in Ireland," Papers WP250, Economic and Social Research Institute (ESRI).
- Ó Gallachóir, Brian P. & Howley, Martin & Cunningham, Stephen & Bazilian, Morgan, 2009. "How private car purchasing trends offset efficiency gains and the successful energy policy response," Energy Policy, Elsevier, vol. 37(10), pages 3790-3802, October.
- Grepperud, Sverre & Rasmussen, Ingeborg, 2004. "A general equilibrium assessment of rebound effects," Energy Economics, Elsevier, vol. 26(2), pages 261-282, March.
- Giblin, S. & McNabola, A., 2009. "Modelling the impacts of a carbon emission-differentiated vehicle tax system on CO2 emissions intensity from new vehicle purchases in Ireland," Energy Policy, Elsevier, vol. 37(4), pages 1404-1411, April.
- De Jong, G. C., 1990. "An indirect utility model of car ownership and private car use," European Economic Review, Elsevier, vol. 34(5), pages 971-985, July.
- Rogan, Fionn & Dennehy, Emer & Daly, Hannah & Howley, Martin & Ó Gallachóir, Brian P., 2011. "Impacts of an emission based private car taxation policy - First year ex-post analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(7), pages 583-597, August.
- Proost, Stef & Van Dender, Kurt, 2001. "The welfare impacts of alternative policies to address atmospheric pollution in urban road transport," Regional Science and Urban Economics, Elsevier, vol. 31(4), pages 383-411, July.
- Schafer, Andreas & Jacoby, Henry D., 2006. "Vehicle technology under CO2 constraint: a general equilibrium analysis," Energy Policy, Elsevier, vol. 34(9), pages 975-985, June. Full references (including those not matched with items on IDEAS)