Taxation of fuel and vehicles when emissions are constrained

Geir H. M. Bjertnæs ()
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Geir H. M. Bjertnæs: Statistics Norway, https://www.ssb.no/en/forskning/ansatte

Discussion Papers from Statistics Norway, Research Department

Abstract: A tax on fuel combined with tax exemptions or subsidies for fuel-efficient vehicles is implemented in many countries to fulfill the Paris agreement and to curb mileage-related externalities from road traffic. The present study shows that a tax on fuel should be combined with heavier taxation of lowand zero emission vehicles to curb mileage-related externalities and to fulfill emission targets within the transport sector. The emission target is fulfilled by adjusting the CO2-tax component on fuel. The road user charge on fuel is designed to curb mileage-related externalities. The heavier tax on lowand zero emission vehicles prevent motorists from avoiding the road user charge on fuel by purchasing low- and zero emission vehicles.

Keywords: Transportation; optimal taxation; environmental taxation; global warming (search for similar items in EconPapers)
JEL-codes: H2 H21 H23 Q58 R48 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2021-03
New Economics Papers: this item is included in nep-ene, nep-env, nep-pbe, nep-pub, nep-reg and nep-tre
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Citations: View citations in EconPapers (2)

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