Are The Costs of Reducing Greenhouse Gases from Passenger Vehicles Negative?

Energy models suggest that the costs of reducing carbon emissions from transportation are high relative to those for other sectors. This paper discusses why taxes (or equivalent permit systems) to reduce passenger vehicle emissions produce large net benefits, rather than costs, when account is taken of (a) their impact on reducing other highway externalities besides carbon and (b) interactions with the broader fiscal system. Both of these considerations also strengthen the case for a tax-based approach over fuel economy regulation, while fiscal considerations strengthen the case for taxes over grandfathered emissions permits. The paper also comments on the practical relevance of automobile fuel taxes, or their policy equivalents, to broader legislation intended to mitigate climate change.

• Record URL:
  http://www.sciencedirect.com/science/article/B6WMG-4MP5676-1/1/8135487fc8c97290d982954f7680f793
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/00941190
• Authors:
  • Parry, Ian WH
• Publication Date: 2007-9

Language

• English

Media Info

• Media Type: Print
• Features: References;
• Pagination: pp 273-293
• Serial:
  • Journal of Urban Economics
  • Volume: 62
  • Issue Number: 2
  • Publisher: Elsevier
  • ISSN: 0094-1190
  • Serial URL: http://www.sciencedirect.com/science/journal/00941190

Subject/Index Terms

• TRT Terms: Externalities; Finance; Fuel conservation; Passenger vehicles; Pollutants; Pollution control; Transportation
• Subject Areas: Energy; Environment; Finance; Transportation (General); I10: Economics and Administration; I15: Environment;

Filing Info

• Accession Number: 01103541
• Record Type: Publication
• Files: TRIS
• Created Date: Jun 24 2008 11:42AM