A graduated transport fuel excise for metropolitan areas
Authors registered in the RePEc Author Service: Thomas Colignatus ()
Public Economics from EconWPA
A graduated excise allows mores patial control of congestion and pollution. The cost of a detour to a scheaper gas station defines a gradient, and the integral gives an excise mountain with its top at the center of the metropolitan area. Consisntency implies that the mountain with the maximal gradient is a cone. There are differential effects of fuel efficiency, tank size, speed and (virtual) wage costs. An increase in fuel efficiency e.g. reduces the size of the maximal exxcise cone. Legislation and control would be required to prevent riding bombs and graduated smuggling.
JEL-codes: H3 R4 (search for similar items in EconPapers)
Note: 6 pages Word, formulas, three diagrams
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwppe:9605001
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