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Automobile Externalities and Policies

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  • Parry, Ian W.H.

    () (Resources for the Future)

  • Walls, Margaret

    () (Resources for the Future)

  • Harrington, Winston

    () (Resources for the Future)

Abstract

This paper discusses the nature, and magnitude, of externalities associated with automobile use, including local and global pollution, oil dependence, traffic congestion and traffic accidents. It then discusses current federal policies affecting these externalities, including fuel taxes, fuel-economy and emissions standards, and alternative fuel policies, summarizing, insofar as possible, the welfare effects of those policies. Finally, we discuss emerging pricing policies, including congestion tolls, and insurance reform, and we summarize what appears to be the appropriate combination of policies to address automobile externalities.

Suggested Citation

  • Parry, Ian W.H. & Walls, Margaret & Harrington, Winston, 2007. "Automobile Externalities and Policies," Discussion Papers dp-06-26, Resources For the Future.
  • Handle: RePEc:rff:dpaper:dp-06-26
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    pollution; congestion; accidents; fuel tax; fuel economy standard; congestion pricing;

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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    1. Studies on the automobile industry

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