Decarbonising transport: Can we rely on fuel taxes?
Although not without criticism, carbon pricing has been identified as a key instrument to support the energy transition process, as it can convey the signal of the actual cost of carbon in relative prices. However, when price and tax elasticities are considered separately, the international literature has shown that energy demand may be more sensitive to changes in tax rates. The authors estimate gasoline and diesel demand elasticities for Italian households using a dynamic model on a custom-built pseudo-panel. The authors' results confirm that household demand for transport fuels is more sensitive to the tax component than to the oil price, controlling for income level, age and cohort effects. These results have important implications for the potential effectiveness of transport fuel taxation in setting the decarbonisation pathway: a lower tax rate is required to achieve the target than that assumed on the basis of gross price elasticities.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/issn/13619209
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Supplemental Notes:
- © 2024 The Author(s). Published by Elsevier Ltd. Abstract reprinted with permission of Elsevier.
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Authors:
- Bardazzi, Rossella
- Pazienza, Maria Grazia
- Publication Date: 2024-11
Language
- English
Media Info
- Media Type: Web
- Features: Appendices; Figures; References; Tables;
- Pagination: 104391
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Serial:
- Transportation Research Part D: Transport and Environment
- Volume: 136
- Issue Number: 0
- Publisher: Elsevier
- ISSN: 1361-9209
- Serial URL: http://www.sciencedirect.com/science/journal/13619209
Subject/Index Terms
- TRT Terms: Decarbonization; Dynamic models; Energy consumption; Fuel taxes
- Geographic Terms: European Union
- Subject Areas: Energy; Environment; Highways;
Filing Info
- Accession Number: 01931466
- Record Type: Publication
- Files: TRIS
- Created Date: Sep 20 2024 8:48AM