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The Environmental Consequences of Tax Differentiation by Vehicle Age in Costa Rica

Author

Listed:
  • Nick Johnstone
  • Jaime Echeverria
  • Ina Porras
  • Ronald Mejias

Abstract

This paper provides an overview of the potential environmental benefits in Costa Rica of increasing the relative tax rate on imported used cars. Analysis of this policy instrument has been chosen because Costa Rican fiscal policy has traditionally favoured the import of used cars. Moreover, a tax which differentiates between new and used cars can be a good proxy for taxes based directly upon emission levels. The results of the simulation reveal considerable environmental benefits in terms of nitrogen oxides, hydrocarbons and carbon monoxide emissions.

Suggested Citation

  • Nick Johnstone & Jaime Echeverria & Ina Porras & Ronald Mejias, 2001. "The Environmental Consequences of Tax Differentiation by Vehicle Age in Costa Rica," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 44(6), pages 803-814.
  • Handle: RePEc:taf:jenpmg:v:44:y:2001:i:6:p:803-814
    DOI: 10.1080/09640560120087570
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    Cited by:

    1. Blackman, Allen & Osakwe, Rebecca & Alpizar, Francisco, 2010. "Fuel tax incidence in developing countries: The case of Costa Rica," Energy Policy, Elsevier, vol. 38(5), pages 2208-2215, May.

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