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Automobile Externalities and Policies

Ian Parry (), Margaret Walls () and Winston Harrington

Discussion Papers from Resources For the Future

Abstract: This paper discusses the nature, and magnitude, of externalities associated with automobile use, including local and global pollution, oil dependence, traffic congestion and traffic accidents. It then discusses current federal policies affecting these externalities, including fuel taxes, fuel-economy and emissions standards, and alternative fuel policies, summarizing, insofar as possible, the welfare effects of those policies. Finally, we discuss emerging pricing policies, including congestion tolls, and insurance reform, and we summarize what appears to be the appropriate combination of policies to address automobile externalities.

Keywords: pollution; congestion; accidents; fuel tax; fuel economy standard; congestion pricing (search for similar items in EconPapers)
JEL-codes: Q54 R48 H23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene, nep-net and nep-pbe
Date: 2007-01-19
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