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The impact of fuel taxes on public transport -- an empirical assessment for Germany

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  • Storchmann, K. -H.

Abstract

An increase in fuel taxes is often connected with the hypothesis of a triple dividend: Apart from the modal-shift-effect, which relieves the environment as well as the infrastructure, and the fiscal effect, which should increase the public revenue, the movement of passengers to public transport systems should decrease its deficit. However, this calculation fails because higher fuel prices increase peak-hour transit use but not leisure or off-peak transit. But the typical attribute of peak traffic is above-average marginal costs and below average revenues. Therefore, higher fuel taxes will increase public transport's deficit rather than decrease it. The fiscal lucrativeness of higher fuel taxes will be significantly lower than is often expected.

Suggested Citation

  • Storchmann, K. -H., 2001. "The impact of fuel taxes on public transport -- an empirical assessment for Germany," Transport Policy, Elsevier, vol. 8(1), pages 19-28, January.
    • Handle: RePEc:eee:trapol:v:8:y:2001:i:1:p:19-28
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    1. Frondel, Manuel & Schmidt, Christoph M. & Vance, Colin, 2008. "A Regression on Climate Policy - The European Commission's Proposal to Reduce CO₂ Emissions from Transport," Ruhr Economic Papers 44, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    2. Manuel Frondel & Colin Vance, 2010. "A Count Data Analysis of Ridership in Germany’s Public Transport," Ruhr Economic Papers 0209, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    3. Barros, Victor & Cruz, Carlos Oliveira & Júdice, Tomás & Sarmento, Joaquim Miranda, 2021. "Is taxation being effectively used to promote public transport in Europe?," Transport Policy, Elsevier, vol. 114(C), pages 215-224.
    4. Mahlia, T.M.I. & Tohno, S. & Tezuka, T., 2013. "International experience on incentive program in support of fuel economy standards and labelling for motor vehicle: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 18-33.
    5. Lane, Bradley W., 2010. "The relationship between recent gasoline price fluctuations and transit ridership in major US cities," Journal of Transport Geography, Elsevier, vol. 18(2), pages 214-225.
    6. Ehrlich, Lars & Wolf, André, 2015. "Determinanten und Risiken der Energiepreisentwicklung und ihre Implikationen für den städtischen Verkehr: Studie für die Hamburger Hochbahn AG," HWWI Policy Papers 93, Hamburg Institute of International Economics (HWWI).
    7. Simone Borghesi & Chiara Calastri & Giorgio Fagiolo, 2014. "How do people choose their commuting mode? An evolutionary approach to transport choices," LEM Papers Series 2014/15, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    8. Donna, Javier D., 2018. "Measuring Long-Run Price Elasticities in Urban Travel Demand," MPRA Paper 90260, University Library of Munich, Germany.
    9. Mattson, Jeremy, 2008. "The Effects of Gasoline Prices on Bus Ridership for Different Types of Transit Systems," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 47(3).
    10. Hana Foltýnová & Jan Brůha, 2006. "Příspěvek k problematice optimálního zdanění [A note on the optimal taxation theory]," Politická ekonomie, Prague University of Economics and Business, vol. 2006(3), pages 366-381.
    11. Cavalcanti, Marcelo & Szklo, Alexandre & Machado, Giovani & Arouca, Maurício, 2012. "Taxation of automobile fuels in Brazil: Does ethanol need tax incentives to be competitive and if so, to what extent can they be justified by the balance of GHG emissions?," Renewable Energy, Elsevier, vol. 37(1), pages 9-18.
    12. Javier D. Donna, 2021. "Measuring long‐run gasoline price elasticities in urban travel demand," RAND Journal of Economics, RAND Corporation, vol. 52(4), pages 945-994, December.
    13. Roberto Rendeiro Martín-Cejas & Rafael Suárez Vega & Pedro Pablo Ramirez Sanchez, 2021. "GIS Approach Applied to Tourist Bus Route Design on Lanzarote Island," ULB Institutional Repository 2013/351788, ULB -- Universite Libre de Bruxelles.
    14. Hanadi Al-Thani & Muammer Koç & Rima J. Isaifan & Yusuf Bicer, 2022. "A Review of the Integrated Renewable Energy Systems for Sustainable Urban Mobility," Sustainability, MDPI, vol. 14(17), pages 1-27, August.
    15. Manuel Frondel & Christoph M. Schmidt & Colin Vance, 2008. "A Regression on Climate Policy - The European Commission's Proposal to Reduce CO2 Emissions from Transport," Ruhr Economic Papers 0044, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    16. He, He & Kim, Chaeyoung, 2023. "Vehicle and Fuel Taxation for Transport Demand Management : Learnings from the Literature through a Development Lens," Policy Research Working Paper Series 10647, The World Bank.
    17. Adejare Adegbite Tajudeen, 2021. "Taxation and Transportation: Granger Causality Approach in Nigeria," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 31(3), pages 1-20, September.
    18. Mattson, Jeremy & Hough, Jill & Varma, Amiy, 2018. "Estimating demand for rural intercity bus services," Research in Transportation Economics, Elsevier, vol. 71(C), pages 68-75.
    19. Frondel, Manuel & Vance, Colin, 2011. "Rarely enjoyed? A count data analysis of ridership in Germany's public transport," Transport Policy, Elsevier, vol. 18(2), pages 425-433, March.
    20. Mariano Gallo & Mario Marinelli, 2020. "Sustainable Mobility: A Review of Possible Actions and Policies," Sustainability, MDPI, vol. 12(18), pages 1-39, September.
    21. Hirte, Georg & Tscharaktschiew, Stefan, 2013. "The optimal subsidy on electric vehicles in German metropolitan areas: A spatial general equilibrium analysis," Energy Economics, Elsevier, vol. 40(C), pages 515-528.
    22. Chiara Calastri & Simone Borghesi & Giorgio Fagiolo, 2019. "How do people choose their commuting mode? An evolutionary approach to travel choices," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(3), pages 887-912, October.
    23. Jovicic, Goran & Hansen, Christian Overgaard, 2003. "A passenger travel demand model for Copenhagen," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(4), pages 333-349, May.
    24. Hojin Jung, 2017. "Investigating the unobserved heterogeneity in consumers’ sensitivity to the price of gasoline," Marketing Letters, Springer, vol. 28(3), pages 477-490, September.
    25. Roberto Rendeiro Martín-Cejas & Rafael Suárez Vega & Pedro Pablo Ramírez Sánchez, 2021. "GIS Approach Applied to Tourist Bus Route Design on Lanzarote Island," Sustainability, MDPI, vol. 13(19), pages 1-16, September.

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