Fuel tax, cross subsidy and transport: Assessing the effects on income and consumption distribution in Brazil

Passenger transport has become a typical item in the household budget in Brazil, and structural changes in this type of service affect households differently. The authors' paper explores the links between consumption, income and transport in assessing the redistributive and economic effects of the fuel tax in the Brazilian economy, called contribution of intervention in the economic domain (CIDE). To accomplish this task, the authors developed a dynamic computable general equilibrium model that recognizes a Social Accounting Matrix (SAM). Two scenarios are evaluated: (1) an overall cut of CIDE-fuels to assess its role in economy; (2) the burden of the gasoline tax and reduction of the diesel tax to subsidize public transport services. The main findings indicate a deviation from real GDP above the baseline forecast path, positively affected by internal market and the reduction in income inequality. Typical households in the middle- and lower-income bracket would benefit most from these policy instruments.

• Record URL:
  • https://doi.org/10.1016/j.retrec.2022.101204
• Record URL:
  • http://www.sciencedirect.com/science/article/pii/S0739885922000270
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/07398859
• Supplemental Notes:
  • © 2022 Elsevier Ltd. All rights reserved. Abstract reprinted with permission of Elsevier.
• Authors:
  • Proque, Andressa Lemes
  • 0000-0002-2027-4282
  • Betarelli Jr, Admir Antonio
  • 0000-0003-0002-7599
  • Perobelli, Fernando Salgueiro
• Publication Date: 2022-11

Language

• English

Media Info

• Media Type: Web
• Features: Appendices; Figures; References; Tables;
• Pagination: 101204
• Serial:
  • Research in Transportation Economics
  • Volume: 95
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 0739-8859
  • Serial URL: http://www.sciencedirect.com/science/journal/07398859

Subject/Index Terms

• TRT Terms: Consumption; Economic growth; Fuel taxes; Households; Income; Policy; Subsidies
• Geographic Terms: Brazil
• Subject Areas: Economics; Energy; Finance; Passenger Transportation; Planning and Forecasting; Policy;

Filing Info

• Accession Number: 01848042
• Record Type: Publication
• Files: TRIS
• Created Date: Jun 6 2022 4:54PM