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

David Broadstock and Xun Chen
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Xun Chen: Research Institute of Economics and Management (RIEM), Southwestern University of Finance and Economics, Sichuan, China

No 136, Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) from Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey

Abstract: In this paper it is shown that the relative demands for UK Gasoline and Diesel fuels are price responsive. Given 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 non-normalities and relative small sample sizes.

Keywords: AIDS model; technology biases; time-varying parameter. (search for similar items in EconPapers)
JEL-codes: Q40 R40 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2012-02
New Economics Papers: this item is included in nep-ene, nep-env, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Applied Economics Letters, 320(6), 2013, pp. 544–548. (Revised Version)

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Persistent link: https://EconPapers.repec.org/RePEc:sur:seedps:136

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