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Regulatory Measures to Reduce the Impact of Old Cars on Air Quality

Author

Listed:
  • Joakim Johansson

    (Inregia AB)

  • Sirje P‰dam

    (Departament of Public Economy at Tallinn University of Technology, and Inregia AB)

Abstract

From the perspective of economic efficiency there are obvious advantages of regional differentiation of regulatory measures instead of relying on nationally uniform regulation, which is due to the fact that adverse health impacts, as well as other negative externalities, such as environmental damage and congestion, vary between locations. One conclusion of the analysis is that ranking of economic instruments depends on whether regulation is imposed nationally or regionally. Another implication is that if road pricing is not pos≠sible to implement locally, then command and control need to be considered.

Suggested Citation

  • Joakim Johansson & Sirje P‰dam, 2005. "Regulatory Measures to Reduce the Impact of Old Cars on Air Quality," Working Papers 121, Tallinn School of Economics and Business Administration, Tallinn University of Technology.
    • Handle: RePEc:ttu:wpaper:121
    Note: This paper presents two sub-themes of a project commissioned by the Swedish Environmental Protection Agency in autumn 2003. Three tasks were in focus: (i) to evaluate the change in Swedish scrapping pre≠mium carried out in July 2001; (ii) to analyse combinations of different economic measures, which promote renewal of the car fleet; and (iii) to assess the consequences of introducing regional regulation. For the full report see: Johansson and P‰dam, 2004. We thank Per Andersson and Reino Abrahamsson at the Swedish Environmental Protection Agency for valuable comments on draft versions of the full report. We also thank the participants at the seminar held in Stockholm on 31st March 2004, the participants at the Finnish-Estonian Meeting held in Helsinki, 19-20 November 2004, and an anonymous referee for valuable comments
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    File URL: http://deepthought.ttu.ee/majandus/tekstid/TUTWPE_05_121.pdf
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    More about this item

    Keywords

    air quality standards; road pricing; vehicle taxes; scrapping subsidy; economic efficiency;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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