A possible role for discriminatory fuel duty in reducing the emissions from road transport: some UK evidence

David Broadstock and Xun Chen

Applied Economics Letters, 2013, vol. 20, issue 6, 540-544

Abstract: It is shown that the relative demands for gasoline and diesel fuels are price-responsive. Given the differing emissions-based externalities from these two fuel types, it is contended that discriminatory fuel duty might be a means to reduce these externalities. Results are derived from an Almost Ideal Demand System with time-varying technological progress, estimated using a bootstrap procedure given the nonnormalities and relative small sample sizes.

Date: 2013
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Working Paper: A possible role for discriminatory fuel duty in reducing the emissions from road transport: Some UK evidence (2012)
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DOI: 10.1080/13504851.2012.714059

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