Reducing greenhouse gas emissions in transport: some tax policy options

This paper provides an examination of three tax policy options which might reduce greenhouse gas emissions in the transport sector. The options relate to taxation of business cars, vehicle sales tax and registration charges, and a carbon tax on transport fuel. The discussion on business cars covers the current tax arrangements on government/company cars, a comparison between the Australian and the United Kingdom methods of valuing car benefits, the consequences of provision of fuel by employers, and a consideration of whether the availability of second- hand business cars has biased the aftermarket towards larger and less fuel- efficient cars. The second tax policy option involves an approximately revenue neutral system of skewed sales tax and registration charges. The effects of the option on the market shares of different fuel consumption classes are estimated, and the equity implications of the skewed charges, particularly in the used car market, are reviewed. In the third section of the paper the efficiency and equity effects of a carbon tax on transport fuels are discussed, and the effectiveness of such a tax in achieving a given level of emission reduction by 2005 is considered. Approximate estimates of the expected reduction in fuel consumption in specific transport sectors from a particular level of carbon tax are made, and estimated total fuel consumption in 2005 is derived and compared with a 'business-as-usual' scenario.


  • English

Media Info

  • Pagination: xvii + 54p
  • Serial:
    • Issue Number: 3

Subject/Index Terms

Filing Info

  • Accession Number: 01433229
  • Record Type: Publication
  • Source Agency: ARRB
  • ISBN: 642168695
  • Files: ATRI
  • Created Date: Aug 24 2012 5:30PM