 Distributional effects of taxes on car fuel, use, ownership and purchasesJonas Eliasson (), Roger Pyddoke and Jan-Erik Swärdh Economics of Transportation, 2018, vol. 15, issue C, 1-15 Abstract: We analyse distributional effects of four car-related tax instruments: an increase of the fuel tax, a new kilometre tax, an increased CO2-differentiated vehicle ownership tax, and a CO2-differentiated purchase tax on new cars. Distributional effects are analysed with respect to income, lifecycle category, and spatial dimensions. The analysed taxes are progressive over most of the income distribution, but barely regressive if the highest and lowest incomes are included. However, the fraction of the population who suffer substantial welfare losses relative to income is much higher in lower income groups. We also study revenue recycling schemes; when these are included, the combined effect of tax and recycling is progressive. Considering geographical differences; rural areas carry a larger burden of fuel and vehicle taxes than urban areas, and satellites/suburbs carry a larger burden than central cities. However, rural areas are affected remarkably similar regardless of where in the country they are located. Keywords: Distributional effects; Equity effects; Fuel tax; Car ownership tax (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecotra:v:15:y:2018:i:c:p:1-15 DOI: 10.1016/j.ecotra.2018.03.001 Access Statistics for this article Economics of Transportation is currently edited by Mogens Fosgerau and Erik Verhoef More articles in Economics of Transportation from Elsevier |
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