A green reform is not always green

Fosgerau, Mogens and Jensen, Thomas C. (2013): A green reform is not always green. Published in: Transportation Research Part C , Vol. 30, (2013): pp. 210-220.

Abstract

This paper analyses a tax reform, explicitly conceived by policy makers to be climate-friendly, that partly replaces a high vehicle registration tax by road user charging and allows for differentiation of the remaining registration tax by fuel efficiency. A microeconomic framework is proposed to analyse such a reform. For the case of Denmark, the analysis shows that the reform is likely to yield a significant and robust welfare gain. However, it seems not unlikely that CO2 emissions from passenger cars may increase as a result of the reform.

• Item Type: MPRA Paper
• Language: English
• Keywords: Congestion; Road user charging; Tax reform; CO2; Welfare economics; Registration tax
• Subjects: H - Public Economics > H2 - Taxation, Subsidies, and Revenue; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Economics > R41 - Transportation: Demand, Supply, and Congestion ; Travel Time ; Safety and Accidents ; Transportation Noise

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