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The Use of Transferable Permits in the Transport Sector

  • Charles Raux


    (LET - Laboratoire d'économie des transports - CNRS - UL2 - Université Lumière - Lyon 2 - École Nationale des Travaux Publics de l'État [ENTPE])

This report focuses on the potential use of domestic transferable permit (TPs) systems in the transport sector, in order to address the issue of mobility needs management and especially the reductions of airborne pollution and greenhouse gas emissions. Firstly the context of the transport sector is briefly reviewed, the main arguments for or against the use of TPs in the sector are analysed and relevant areas are identified. Secondly four case studies of past, present or possible future permits systems are presented and evaluated. The main conclusions are: TPs applied to mobile sources are technically feasible at acceptable financial costs for protecting sensitive geographic areas. TPs schemes applied to automakers for unit vehicle emissions are also viable. Clarity, simplicity in target and pragmatism in scheme design help for their success. Regarding the broader GHG issue end-user TPs would currently involve significant administrative costs when compared with fuel tax system. Given the social resistance encountered by increase in fuel taxes in several countries, end-user TPs with free allocation may intrinsically have potential greater effectiveness and acceptance and should be thoroughly evaluated case-by-case as an alternative.

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Paper provided by HAL in its series Post-Print with number halshs-00080454.

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Date of creation: 2002
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Publication status: Published in OECD (Ed.). Implementing Domestic Tradeable Permits. Recent Developments and Future Challenges, OECD, pp. 141-185, 2002, OECD Proceedings
Handle: RePEc:hal:journl:halshs-00080454
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  1. Rubin Jonathan & Kling Catherine, 1993. "An Emission Saved Is an Emission Earned: An Empirical Study of Emission Banking for Light-Duty Vehicle Manufacturers," Journal of Environmental Economics and Management, Elsevier, vol. 25(3), pages 257-274, November.
  2. Onursal, B. & Gautam, S.P., 1997. "Vehicular Air Pollution: Experiences from Seven Latin American Urban Centers," Papers 373, World Bank - Technical Papers.
  3. Stavins Robert N., 1995. "Transaction Costs and Tradeable Permits," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 133-148, September.
  4. E Verhoef & P Nijkamp & P Rietveld, 1997. "Tradeable permits: their potential in the regulation of road transport externalities," Environment and Planning B: Planning and Design, Pion Ltd, London, vol. 24(4), pages 527-548, July.
  5. Charles Raux & Grégoire Marlot, 2000. "Application des permis négociables dans le secteur des transports," Working Papers halshs-00866145, HAL.
  6. Löfgren, Åsa & Hammar, Henrik, 1999. "The Phase-Out of Leaded Gasoline in the EU: A Successful Failure?," Working Papers in Economics 19, University of Gothenburg, Department of Economics.
  7. Suzi Kerr & Richard G. Newell, 2003. "Policy-Induced Technology Adoption: Evidence from the U.S. Lead Phasedown," Journal of Industrial Economics, Wiley Blackwell, vol. 51(3), pages 317-343, 09.
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