A possible role for discriminatory fuel duty in reducing the emissions from road transport: Some UK evidence
In this paper it is shown that the relative demands for UK Gasoline and Diesel fuels are price responsive. Given differing emissions based externalities from these two fuel types, it is contended that discriminatory fuel duty might be a means to reduce these externalities. Results are derived from an Almost Ideal Demand System with time varying technological progress, estimated using a bootstrap procedure given non-normalities and relative small sample sizes.
|Date of creation:||Feb 2012|
|Date of revision:|
|Publication status:||Published in Applied Economics Letters, 320(6), 2013, pp. 544–548. (Revised Version)|
|Contact details of provider:|| Postal: Guildford, Surrey GU2 5XH, UK|
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- Yohe, Gary W., 1979. "Taxing consumption to finance reduced emissions : An alternative pollution control," Economics Letters, Elsevier, vol. 2(1), pages 1-4.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
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- I. A. Moosa & J. L. Baxter, 2002. "Modelling the trend and seasonals within an AIDS model of the demand for alcoholic beverages in the United Kingdom," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 17(2), pages 95-106.
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