A green reform is not always green

TY - JOUR

T1 - A green reform is not always green

AU - Fosgerau, Mogens

AU - Jensen, Thomas C.

PY - 2013/5/1

Y1 - 2013/5/1

N2 - 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.

AB - 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.

KW - CO

KW - Congestion

KW - Registration tax

KW - Road user charging

KW - Tax reform

KW - Welfare economics

UR - http://www.scopus.com/inward/record.url?scp=84455196484&partnerID=8YFLogxK

U2 - 10.1016/j.trc.2011.11.011

DO - 10.1016/j.trc.2011.11.011

M3 - Journal article

AN - SCOPUS:84455196484

SN - 0968-090X

VL - 30

SP - 210

EP - 220

JO - Transportation Research Part C: Emerging Technologies

JF - Transportation Research Part C: Emerging Technologies

ER -