publication . Article . Preprint . 2006

Are the Costs of Reducing Greenhouse Gases from Passenger Vehicles Negative?

Parry, Ian W.H.;
  • Published: 07 Dec 2006 Journal: Journal of Urban Economics, volume 62, pages 273-293 (issn: 0094-1190, Copyright policy)
  • Publisher: Elsevier BV
Energy models suggest that the cost of reducing carbon emissions from the transportation sector is high relative to other sectors, such as electricity generation. However, this paper shows that taxes to reduce passenger vehicle emissions produce large net benefits, rather than costs, when account is taken of (a) their impact on reducing non-carbon externalities from passenger vehicle use, and (b) interactions with the broader fiscal system. Both of these considerations also strengthen the case for using a tax-based approach to reduce emissions over fuel economy regulation, while fiscal considerations strengthen the case for taxes over (non-auctioned) emissions p...
free text keywords: carbon policies, passenger vehicles, externalities, welfare costs, Economics and Econometrics, Urban Studies, Economics, Environmental engineering, Greenhouse gas, Externality, Electricity generation, Fiscal system, Natural resource economics, Microeconomics, Fuel conservation, jel:Q54, jel:R48, jel:H23
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publication . Article . Preprint . 2006

Are the Costs of Reducing Greenhouse Gases from Passenger Vehicles Negative?

Parry, Ian W.H.;