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A System of Tradable CO2 Permits Applied to Fuel Consumption by Motorists

Author

Listed:
  • Charles Raux

    () (LET - Laboratoire d'économie des transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique)

  • Grégoire Marlot

    (LET - Laboratoire d'économie des transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique)

Abstract

Decentralized transferable permit systems in the transport sector can be of interest with regard to reducing greenhouse gas emissions, in spite of anticipated transaction costs. This paper describes a potential application of a domestic market for car fuel consumption permits. The marginal costs of consumption reduction vary sufficiently according to motorists' residential locations to consider permit exchanges. Economic evaluation of this system shows that there are transfers of surplus between the various groups of motorists according to their residential locations. The central government may lose significant revenues when compared with a conventional fuel tax. Lastly, the issue of transaction costs, the benefits and disadvantages in terms of social acceptability and equity are discussed. (JEL classification: D120; D450; R410; R480).

Suggested Citation

  • Charles Raux & Grégoire Marlot, 2005. "A System of Tradable CO2 Permits Applied to Fuel Consumption by Motorists," Post-Print halshs-00067833, HAL.
  • Handle: RePEc:hal:journl:halshs-00067833
    DOI: 10.1016/j.tranpol.2005.02.006
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00067833
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    File URL: https://halshs.archives-ouvertes.fr/halshs-00067833/document
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    References listed on IDEAS

    as
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    Cited by:

    1. Fan, Jin & Li, Jun & Wu, Yanrui & Wang, Shanyong & Zhao, Dingtao, 2016. "The effects of allowance price on energy demand under a personal carbon trading scheme," Applied Energy, Elsevier, vol. 170(C), pages 242-249.
    2. Santos, Georgina & Behrendt, Hannah & Maconi, Laura & Shirvani, Tara & Teytelboym, Alexander, 2010. "Part I: Externalities and economic policies in road transport," Research in Transportation Economics, Elsevier, vol. 28(1), pages 2-45.
    3. repec:spr:nathaz:v:88:y:2017:i:2:d:10.1007_s11069-017-2886-3 is not listed on IDEAS
    4. Yang, Hai & Wang, Xiaolei, 2011. "Managing network mobility with tradable credits," Transportation Research Part B: Methodological, Elsevier, vol. 45(3), pages 580-594, March.
    5. 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.
    6. Harwatt, Helen & Tight, Miles & Bristow, Abigail L. & Gühnemann, Astrid, 2011. "Personal carbon trading and fuel price increases in the transport sector: an exploratory study of public response in the UK," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 47, pages 47-70.
    7. Achtnicht, Martin & von Graevenitz, Kathrine & Koesler, Simon & Löschel, Andreas & Schoeman, Beaumont & Tovar Reaños, Miguel Angel, 2015. "Including road transport in the EU-ETS: An alternative for the future?," ZEW Expertises, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research, number 111452.
    8. Wadud, Zia, 2011. "Personal tradable carbon permits for road transport: Why, why not and who wins?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(10), pages 1052-1065.
    9. repec:eee:transa:v:107:y:2018:i:c:p:52-64 is not listed on IDEAS
    10. Ch'ng, Kean Siang, 2010. "Individual tradable permit market and traffic congestion: An experimental study," MPRA Paper 26638, University Library of Munich, Germany.
    11. Fan, Wenbo & Jiang, Xinguo, 2013. "Tradable mobility permits in roadway capacity allocation: Review and appraisal," Transport Policy, Elsevier, vol. 30(C), pages 132-142.
    12. Santos, Georgina, 2017. "Road fuel taxes in Europe: Do they internalize road transport externalities?," Transport Policy, Elsevier, vol. 53(C), pages 120-134.
    13. Charles Raux, 2008. "Tradable driving rights in urban areas: their potential for tackling congestion and traffic-related pollution," Post-Print halshs-00185012, HAL.
    14. Flachsland, Christian & Brunner, Steffen & Edenhofer, Ottmar & Creutzig, Felix, 2011. "Climate policies for road transport revisited (II): Closing the policy gap with cap-and-trade," Energy Policy, Elsevier, vol. 39(4), pages 2100-2110, April.
    15. Wang, Xiaolei & Yang, Hai & Zhu, Daoli & Li, Changmin, 2012. "Tradable travel credits for congestion management with heterogeneous users," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 426-437.
    16. Charles Raux, 2011. "Downstream Emissions Trading for Transport," Post-Print halshs-01695597, HAL.
    17. Heinrichs, Heidi & Jochem, Patrick & Fichtner, Wolf, 2014. "Including road transport in the EU ETS (European Emissions Trading System): A model-based analysis of the German electricity and transport sector," Energy, Elsevier, vol. 69(C), pages 708-720.
    18. Charles Raux, 2007. "Réduire les émissions de CO2 dans le transport : un marché de permis pour les automobilistes et le frêt," Post-Print halshs-00204023, HAL.
    19. Patricia Lejoux & Charles Raux, 2011. "Attitudes et changements de comportement de mobilité des ménages face à l’instauration de politiques de rationnement du carburant automobile : résultats d’une enquête qualitative," Post-Print halshs-01077172, HAL.
    20. Paltsev, Sergey & Chen, Y.-H. Henry & Karplus, Valerie & Kishimoto, Paul & Reilly, John & Loeschel, Andreas & von Graevenitz, Kathrine & Koesler, Simon, 2015. "Reducing CO2 from cars in the European Union: Emission standards or emission trading?," CAWM Discussion Papers 84, University of Münster, Center of Applied Economic Research Münster (CAWM).
    21. McNamara, David & Caulfield, Brian, 2011. "Measuring the potential implications of introducing a cap and share scheme in Ireland to reduce green house gas emissions," Transport Policy, Elsevier, vol. 18(4), pages 579-586, August.
    22. repec:kap:netspa:v:17:y:2017:i:2:d:10.1007_s11067-016-9334-x is not listed on IDEAS

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