Regulatory Measures to Reduce the Impact of Old Cars on Air Quality

Joakim Johansson () and Sirje P‰dam ()
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Joakim Johansson: Inregia AB
Sirje P‰dam: Departament of Public Economy at Tallinn University of Technology, and Inregia AB

No 121, Working Papers from Tallinn School of Economics and Business Administration, Tallinn University of Technology

Abstract: From the perspective of economic efficiency there are obvious advantages of regional differentiation of regulatory measures instead of relying on nationally uniform regulation, which is due to the fact that adverse health impacts, as well as other negative externalities, such as environmental damage and congestion, vary between locations. One conclusion of the analysis is that ranking of economic instruments depends on whether regulation is imposed nationally or regionally. Another implication is that if road pricing is not pos≠sible to implement locally, then command and control need to be considered.

Keywords: air quality standards; road pricing; vehicle taxes; scrapping subsidy; economic efficiency (search for similar items in EconPapers)
JEL-codes: D62 R48 (search for similar items in EconPapers)
Pages: 18
Date: 2005
New Economics Papers: this item is included in nep-ene, nep-env and nep-reg
Note: This paper presents two sub-themes of a project commissioned by the Swedish Environmental Protection Agency in autumn 2003. Three tasks were in focus: (i) to evaluate the change in Swedish scrapping pre≠mium carried out in July 2001; (ii) to analyse combinations of different economic measures, which promote renewal of the car fleet; and (iii) to assess the consequences of introducing regional regulation. For the full report see: Johansson and P‰dam, 2004. We thank Per Andersson and Reino Abrahamsson at the Swedish Environmental Protection Agency for valuable comments on draft versions of the full report. We also thank the participants at the seminar held in Stockholm on 31st March 2004, the participants at the Finnish-Estonian Meeting held in Helsinki, 19-20 November 2004, and an anonymous referee for valuable comments
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Published in Working Papers in Economics, School of Economics and Business Administration,Tallinn University of Technology (TUTWPE), Volume 14, Pages 37-54

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