Abstract
If transport fuel is taxed as a method of charging for road use and congestion, then, as a first approximation, carbon taxes should be superimposed on the existing taxes and the final price of transport fuel should rise by somewhat more than the carbon tax. If transport fuels are already taxed, the cost of meeting the emissions target will depend sensitively on whether the reduction in CO2 emissions is a proportion from base levels or to a target level, depending on factors other than fuel consumption (GNP or population).
Get full access to this article
View all access options for this article.
References
1.
Berger
K. Ø.
Fimreite
R. Golombek
Hoel
M.
(1991 ) ‘The oil market and international agreements on CO2 emissions’, mimeo, Central Bureau of Statistics, Oslo, Norway
2.
Commission of the European Communities
(1991 ), A Community Strategy to Limit Carbon Dioxide Emissions and to Improve Energy Efficiency, Communication from the Commission to the Council, SEC(91) 1744 final, 14 October 1991 .
3.
Dawson
J.A.L.
Catling
I.
, (1986 ), ‘Electronic Road Pricing in Hong Kong’, Transportation Research, Vol 20A, March, 129 -34 .
4.
Hoeller
P.
Coppel
J.
, (1992 ) ‘Energy Taxation and Price Distortion in Fossil Fuel Markets: Some Implications for Climate Change Policy’, OECD Economics Department Working Paper, April, OECD, Paris.
5.
Hoeller
P.
Wallin
M.
, (1991 ) ‘Energy prices, taxes and carbon dioxide emissions’, OECD Economics and Statistics Department Working Papers, No. 106, Paris
6.
Newbery
D.M.
(1988 a) ‘Road User Charges in Britain’, Economic Journal (Conference), 161 -176 .
7.
Newbery
D.M.
(1988 b) ‘Charging for roads’, Research Observer, 3 (2), July, 119 -38 .
8.
Newbery
D.M.
(1989 a) ‘Cost recovery from optimally designed roads’, Economica, vol 56, pp 165 -85 .
9.
Newbery
D.M.
(1989 b) ‘Road Transport Fuel Pricing Policy’, Annual Review of Energy 14 :75 -94 .
10.
Newbery
D.M.
(1990 a) ‘Pricing and Congestion: Economic Principles Relevant to Pricing Roads’, Oxford Review of Economic Policy’, Vol 6 (2 ), 22 -38 .
11.
Newbery
D.M.
(1990 b) ‘Acid Rain’, Economic Policy, Vol 11, October, 297 -346 .
12.
Newbery
D.M.
(1990 c) ‘Growth, Externalities and Taxation’, Scottish Journal of Political Economy, Nov, 305 -26 .
13.
Pearson
M.
Smith
S.
(1991 ) The European Carbon Tax: An Assessment of the European Commission's Proposals, IFS Report, London.
14.
Poterba
J.M.
(1991 ) ‘Tax Policy to Combat Global Warming: On Designing a Carbon Tax’, p71-97 in R. Dombusch and J. M. Poterba (eds.) Global Warming: Economic Policy Responses, Cambridge, Mass: MIT Press.
15.
Sterner
T.
(1990 ) The Pricing of and Demand for Gasoline, TFB-Report 1990:9, Swedish Transport Research Board, Stockholm, Sweden.
16.
Tait
A.A.
Morgan
D.R.
(1980 ) ‘Gasoline Taxation in Selected OECD Countries, 1970-79’, International Monetary Fund Staff Papers (June ): 349 -79 .
17.
Ulph
D.
(1992 ) ‘A Note on the “Double Benefit ” of Pollution Taxes’, Discussion Paper 92/317, University of Bristol, Department of Economics.