Search

This paper examines the efficiency and distributional effects of fuel tax and feebate policies in the automobile market. I employ a model in which households make two-stage decisions on car ownership and utilization, and I estimate model parameters by combining micro-level data from a household survey and macro-level aggregate data on the Japanese new car market from 2006 through 2013. Interestingly, several system changes in the Japanese feebate created rich variations in vehicle prices across vehicles and over time during the sample period. I use such exogenous variation to overcome the vehicle price endogeneity associated with demand estima?tion. Counterfactual analyses show that the Japanese feebate results in a significant increase in social welfare while augmenting environmental externalities. In particular, the rebound effect induced by the feebate cancels out approximately 7% of the reduction in CO2 emissions that would originally have been attained by the improvement in fuel economy. In addition, I find that the fuel tax at the current tax rate in Japan is 1.7 times less costly than the product tax, an alternative feebate scheme considered in the counterfactuals. I also find that there is no dif?ference in regressivity between the two policies in reducing negative environmental externalities by the same amount.

This paper examines the efficiency and distributional effects of fuel tax and feebate policies in the automobile market. I employ a model in which households make two-stage decisions on car ownership and utilization, and I estimate model parameters by combining micro-level data from a household survey and macro-level aggregate data on the Japanese new car market from 2006 through 2013. Interestingly, several system changes in the Japanese feebate created rich variations in vehicle prices across vehicles and over time during the sample period. I use such exogenous variation to overcome the vehicle price endogeneity associated with demand estima?tion. Counterfactual analyses show that the Japanese feebate results in a significant increase in social welfare while augmenting environmental externalities. In particular, the rebound effect induced by the feebate cancels out approximately 7% of the reduction in CO2 emissions that would originally have been attained by the improvement in fuel economy. In addition, I find that the fuel tax at the current tax rate in Japan is 1.7 times less costly than the product tax, an alternative feebate scheme considered in the counterfactuals. I also find that there is no dif?ference in regressivity between the two policies in reducing negative environmental externalities by the same amount.

The climate changes have arguably been one of the main concerns during the last centuries.The largest contribution of the climate change derives from humanly created greenhouse gases.One third of the greenhouse gas emissions in Sweden comes from domestic transportation.This has led the government to set a taxation on fuels to reduce the carbon dioxide emissionsfrom transportation. The Swedish government has set a target of reducing the CO2 fromdomestic transportation by 70% of 2010th level by 2030 as a part of the long run target of zeronet emissions by 2045.This thesis aims to develop the knowledge about the relation between fuel taxation and carbonemissions from domestic car traveling in Sweden. One previous study has been conductedcovering the same problem. The previous study analyzed older data which creates theopportunity for this thesis to give updated results about the issue. This analysis is based ontime-series data from Sweden between 1990-2019. Regression models will be estimated usingordinary least squares (OLS) estimates to find the coefficient values. The results indicate anegative relationship between fuel taxation and carbon emission from cars in Sweden with a99% confidence level. An increase by the fuel tax by 1 SEK/liter would save approximately600 kilotons CO2 from domestic car traveling on a year. The value of the CO2 saved by anincrease of fuel tax by 1 SEK would be approximately 4 178 062 000 SEK. However, the resultshould not be interpreted as a recommendation for a policy. A more comprehensive analysisabout the effects of fuel taxation is needed to make decisions about whether the policy shouldbe implemented. The extended analysis should account for more ecological effects but also,economic, cultural, and social effects of the fuel tax., Klimatkrisen är onekligen ett av de oftast debatterade problemen i modern tid. Klimatetsförändringar hotar flera arters överlevnadsmöjligheter, inte minst människan. Utsläpp avväxthusgaser är i dagsläget den största orsaken till de pågående klimatförändringarna. AvSveriges växthusgasutsläpp kommer en tredjedel från inrikestransporter. För att reduceraväxthusgaserna från inrikestransporter skattesätter staten drivmedel. Staten har en målsättningom att CO2 utsläppen från inrikestransporter ska minska med 70% av 2010 års nivå till år 2030.Detta är ett etappmål för att nå det långsiktiga målet om obefintliga nettoutsläpp avväxthusgaser år 2045.Denna studie avser att undersöka sambandet mellan drivmedelsskatten och koldioxidutsläppfrån inrikes biltransporter i Sverige. Liknande studier har genomförts tidigare, men då dessastudier analyserat äldre data kan denna studie ge en mer uppdaterad bild av problemet.Analysen bygger på tidsseriedata från Sverige mellan 1990–2019. Regressionsmodellerkommer att skattas med minsta kvadratmetoden (OLS) för att finna drivmedelsskattenssamband med koldioxidutsläppen från inrikes biltransporter. Resultatet visar att det finns ensignifikant negativ relation mellan drivmedelsskatten och koldioxidutsläpp från bilar i Sverigepå 99% konfidensnivå. En ökning av drivmedelsskatten med 1 krona per liter leder till enminskning av CO2 utsläpp från bilar med cirka 600 kiloton under ett år. Denna minskningmotsvarar ett värde av cirka 4 178 062 000 SEK. Resultatet bör dock inte tolkas som enrekommendation angående drivmedelsskatt. Vid beslutsfattande kring drivmedelsskatten bören mer omfattande analys genomföras. Den mer omfattande analysen bör innehålla flerekologiska effekter, men även ekonomiska, kulturella och sociala effekter avdrivmedelsskatten.

The climate changes have arguably been one of the main concerns during the last centuries.The largest contribution of the climate change derives from humanly created greenhouse gases.One third of the greenhouse gas emissions in Sweden comes from domestic transportation.This has led the government to set a taxation on fuels to reduce the carbon dioxide emissionsfrom transportation. The Swedish government has set a target of reducing the CO2 fromdomestic transportation by 70% of 2010th level by 2030 as a part of the long run target of zeronet emissions by 2045.This thesis aims to develop the knowledge about the relation between fuel taxation and carbonemissions from domestic car traveling in Sweden. One previous study has been conductedcovering the same problem. The previous study analyzed older data which creates theopportunity for this thesis to give updated results about the issue. This analysis is based ontime-series data from Sweden between 1990-2019. Regression models will be estimated usingordinary least squares (OLS) estimates to find the coefficient values. The results indicate anegative relationship between fuel taxation and carbon emission from cars in Sweden with a99% confidence level. An increase by the fuel tax by 1 SEK/liter would save approximately600 kilotons CO2 from domestic car traveling on a year. The value of the CO2 saved by anincrease of fuel tax by 1 SEK would be approximately 4 178 062 000 SEK. However, the resultshould not be interpreted as a recommendation for a policy. A more comprehensive analysisabout the effects of fuel taxation is needed to make decisions about whether the policy shouldbe implemented. The extended analysis should account for more ecological effects but also,economic, cultural, and social effects of the fuel tax., Klimatkrisen är onekligen ett av de oftast debatterade problemen i modern tid. Klimatetsförändringar hotar flera arters överlevnadsmöjligheter, inte minst människan. Utsläpp avväxthusgaser är i dagsläget den största orsaken till de pågående klimatförändringarna. AvSveriges växthusgasutsläpp kommer en tredjedel från inrikestransporter. För att reduceraväxthusgaserna från inrikestransporter skattesätter staten drivmedel. Staten har en målsättningom att CO2 utsläppen från inrikestransporter ska minska med 70% av 2010 års nivå till år 2030.Detta är ett etappmål för att nå det långsiktiga målet om obefintliga nettoutsläpp avväxthusgaser år 2045.Denna studie avser att undersöka sambandet mellan drivmedelsskatten och koldioxidutsläppfrån inrikes biltransporter i Sverige. Liknande studier har genomförts tidigare, men då dessastudier analyserat äldre data kan denna studie ge en mer uppdaterad bild av problemet.Analysen bygger på tidsseriedata från Sverige mellan 1990–2019. Regressionsmodellerkommer att skattas med minsta kvadratmetoden (OLS) för att finna drivmedelsskattenssamband med koldioxidutsläppen från inrikes biltransporter. Resultatet visar att det finns ensignifikant negativ relation mellan drivmedelsskatten och koldioxidutsläpp från bilar i Sverigepå 99% konfidensnivå. En ökning av drivmedelsskatten med 1 krona per liter leder till enminskning av CO2 utsläpp från bilar med cirka 600 kiloton under ett år. Denna minskningmotsvarar ett värde av cirka 4 178 062 000 SEK. Resultatet bör dock inte tolkas som enrekommendation angående drivmedelsskatt. Vid beslutsfattande kring drivmedelsskatten bören mer omfattande analys genomföras. Den mer omfattande analysen bör innehålla flerekologiska effekter, men även ekonomiska, kulturella och sociala effekter avdrivmedelsskatten.

Relevance. The rapid development of the transportation industry has led to economic development and at the same time has had a negative impact on the environment, especially in developing countries. Taxation can play an important role in regulating the number of vehicles in the country. Unfortunately, in China, taxation does not fully play its regulatory role. Research objective. This article focuses on the problems of environmental pollution and traffic congestions in large cities and ways of tackling them with the help of transportation tax reforms. Data and methods. This article adopts the method of comparative analysis and selects countries such as Japan, Singapore, and France to analyze their experience with that of China in the sphere of transportation taxation. The analysis concentrates around the three main aspects of taxation: vehicle purchase, vehicle use and discarding of old vehicles. The research data are taken from the Chinese government’s official website and the results of previous research. Results. There is still a lot of room for improvement in China’s transportation taxation system. Feasible suggestions should be drawn up to improve the existing taxation policies. Conclusions. In order to improve China’s transport taxation policy, the study makes a number of proposals regarding the tax on the purchase of vehicles, tax on the use of vehicles and ships, tax on the consumption of refined oil, etc. These proposals can help China embark on a sustainable development path to achieve the goal of coordinated economic, environmental and energy development., Актуальность. Быстрое развитие транспортной отрасли привело к экономическому развитию и в то же время негативно сказалось на окружающей среде. Это явление особенно ярко наблюдается в развивающихся странах. И налогообложение здесь может сыграть важную роль в регулировании количества транспортных средств. К сожалению, на текущий момент оно такую роль не играет. Цель исследования. Эта статья нацелена на анализ использования инструментов налогообложения для решения проблем загрязнения окружающей среды и транспортных заторов, вызванных движением транспорта, а также на разработку практических эффектов налогообложения. Данные и методы. В этой статье используется метод сравнительного анализа. Для сравнения выбираются страны, которые достигли значительных результатов в сфере транспортного налогообложения, такие как Япония, Сингапур и Франция. Текущая ситуация с транспортным налогообложением в Китае проанализирована в трех аспектах: покупка, использование и переработка автомобилей. Данные для исследования взяты с официального сайта правительства и результатов предыдущих исследований. Результаты. Мы показали, что в системе транспортного налогообложения Китая есть еще много возможностей для улучшения. Подготовлены реальные предложения по улучшению существующей политики в сфере транспортного налогообложения. Выводы. Чтобы улучшить политику транспортного налогообложения Китая, исследование вносит ряд предложений касательно налога на покупку транспортных средств, налога на использование транспортных средств и судов, налога на потребление рафинированной нефти и т.д. Эти предложения могут помочь Китаю встать на путь устойчивого развития для достижения цели скоординированного развития экономики, окружающей среды и энергетики.

Greenhouse gases are increasingly causing both global climate changes and local health issues. In particular, carbon dioxide emissions represent 81% of total greenhouse gas emissions. There is evidence that fuel taxes can be adopted as a mitigation measure to lower greenhouse gas emissions and contribute to climate change adaptation goals. Using a panel data approach, this study examined the impact of Swedish fuel taxes on carbon dioxide emissions in various municipalities. The empirical model involved a set of explanatory variables, identified based on the relevant literature that are believed to influence the dependent variable (carbon dioxide emissions), namely: fuel taxes (the variable of interest), the number of passenger cars and the population density in a municipality in a given year. Moreover, to capture the spatial effects, the study included the regional classification of each municipality (rural or urban) as an explanatory variable. Overall, the results indicated that fuel tax has a statistically significant negative effect on carbon dioxide emissions. Specifically, a 1% increase in fuel tax in a given municipality would be associated with a reduction of 0.8% in the amount of carbon dioxide emissions. Distinguishably, the results revealed a positive and statistically significant relationship between carbon dioxide emissions and the municipalities being classified as urban. In light of these results, the study concludes that fuel tax could be utilized as a climate policy instrument, but it should be complemented by other socio-economic and environmental policies tailored to each municipality to achieve the intended effect.

The general opinion is that an increase in fuel taxation would affect the countryside of Sweden to a greater extent, than the inner-city areas of the country. The topic of fuel taxation has become widely discussed on a political level throughout Europe. This paper examines the distributional effects on taxation of fuel in Sweden, by comparing different municipalities from different regions. By using aggregated data from different sources and estimate an increase in fuel prices by 10 percent, this paper estimates the direct effects of an increase in fuel taxation. The results show that by increasing the price on fuel with 10 percent, the municipalities located in the countryside of Sweden have a higher distributional impact and a greater tax burden compared to municipalities located near larger cities. But the differences are modest, and this paper concludes that the fuel tax should be considered proportional throughout all regions of the country.

The general opinion is that an increase in fuel taxation would affect the countryside of Sweden to a greater extent, than the inner-city areas of the country. The topic of fuel taxation has become widely discussed on a political level throughout Europe. This paper examines the distributional effects on taxation of fuel in Sweden, by comparing different municipalities from different regions. By using aggregated data from different sources and estimate an increase in fuel prices by 10 percent, this paper estimates the direct effects of an increase in fuel taxation. The results show that by increasing the price on fuel with 10 percent, the municipalities located in the countryside of Sweden have a higher distributional impact and a greater tax burden compared to municipalities located near larger cities. But the differences are modest, and this paper concludes that the fuel tax should be considered proportional throughout all regions of the country.

We analyse distributional effects of four car-related tax instruments: an increase of the fuel tax, a new kilometre tax, an increased CO2-differentiated vehicle ownership tax, and a CO2-differentiated purchase tax on new cars. Distributional effects are analysed with respect to income, lifecycle category, and spatial dimensions. The analysed taxes are progressive over most of the income distribution, but barely regressive if the highest and lowest incomes are included. However, the fraction of the population who suffer substantial welfare losses relative to income is much higher in lower income groups. We also study revenue recycling schemes; when these are included, the combined effect of tax and recycling is progressive. Considering geographical differences; rural areas carry a larger burden of fuel and vehicle taxes than urban areas, and satellites/suburbs carry a larger burden than central cities. However, rural areas are affected remarkably similar regardless of where in the country they are located., QC 20180919

The paper analyses the potential of a surcharge on national fuel taxes as sustainability-oriented own resource to finance the EU budget. Our estimations show that such a surcharge could yield substantial revenues, ranging between € 12.93 billion (for a surcharge of 0.03 €) and 86.2 billion (for a surcharge of 0.2 €) per year. Besides the contribution an EU fuel tax would make to various sustainability-related EU goals and strategies, it would help to address two specific problems inherent in the current EU system of fuel taxation. An EU fuel tax designed as a surcharge on national fuel taxes would decrease the existing tax bias in favour of diesel, as the surcharge would be levied uniformly on gasoline and diesel, which in most EU Member States is taxed at lower rates, alike. Moreover, by increasing national fuel tax rates, the surcharge would – depending on its level – mitigate or even remove the “under-taxation” of fuel in relation to the minimum fuel tax rates stipulated in the EU Energy Tax Directive in a number of Member States, which is caused by the absence of regular inflation adjustment of nominal fuel tax rates.

The paper analyses the potential of a surcharge on national fuel taxes as sustainability-oriented own resource to finance the EU budget. Our estimations show that such a surcharge could yield substantial revenues, ranging between € 12.93 billion (for a surcharge of 0.03 €) and 86.2 billion (for a surcharge of 0.2 €) per year. Besides the contribution an EU fuel tax would make to various sustainability-related EU goals and strategies, it would help to address two specific problems inherent in the current EU system of fuel taxation. An EU fuel tax designed as a surcharge on national fuel taxes would decrease the existing tax bias in favour of diesel, as the surcharge would be levied uniformly on gasoline and diesel, which in most EU Member States is taxed at lower rates, alike. Moreover, by increasing national fuel tax rates, the surcharge would – depending on its level – mitigate or even remove the “under-taxation” of fuel in relation to the minimum fuel tax rates stipulated in the EU Energy Tax Directive in a number of Member States, which is caused by the absence of regular inflation adjustment of nominal fuel tax rates.

The paper analyses the potential of a surcharge on national fuel taxes as sustainability-oriented own resource to finance the EU budget. Our estimations show that such a surcharge could yield substantial revenues, ranging between € 12.93 billion (for a surcharge of 0.03 €) and 86.2 billion (for a surcharge of 0.2 €) per year. Besides the contribution an EU fuel tax would make to various sustainability-related EU goals and strategies, it would help to address two specific problems inherent in the current EU system of fuel taxation. An EU fuel tax designed as a surcharge on national fuel taxes would decrease the existing tax bias in favour of diesel, as the surcharge would be levied uniformly on gasoline and diesel, which in most EU Member States is taxed at lower rates, alike. Moreover, by increasing national fuel tax rates, the surcharge would – depending on its level – mitigate or even remove the “under-taxation” of fuel in relation to the minimum fuel tax rates stipulated in the EU Energy Tax Directive in a number of Member States, which is caused by the absence of regular inflation adjustment of nominal fuel tax rates.

The paper analyses the potential of a surcharge on national fuel taxes as sustainability-oriented own resource to finance the EU budget. Our estimations show that such a surcharge could yield substantial revenues, ranging between € 12.93 billion (for a surcharge of 0.03 €) and 86.2 billion (for a surcharge of 0.2 €) per year. Besides the contribution an EU fuel tax would make to various sustainability-related EU goals and strategies, it would help to address two specific problems inherent in the current EU system of fuel taxation. An EU fuel tax designed as a surcharge on national fuel taxes would decrease the existing tax bias in favour of diesel, as the surcharge would be levied uniformly on gasoline and diesel, which in most EU Member States is taxed at lower rates, alike. Moreover, by increasing national fuel tax rates, the surcharge would – depending on its level – mitigate or even remove the “under-taxation” of fuel in relation to the minimum fuel tax rates stipulated in the EU Energy Tax Directive in a number of Member States, which is caused by the absence of regular inflation adjustment of nominal fuel tax rates.

We analyse distributional effects of four car-related tax instruments: an increase of the fuel tax, a new kilometre tax, an increased CO2-differentiated vehicle ownership tax, and a CO2-differentiated purchase tax on new cars. Distributional effects are analysed with respect to income, lifecycle category, and spatial dimensions. The analysed taxes are progressive over most of the income distribution, but barely regressive if the highest and lowest incomes are included. However, the fraction of the population who suffer substantial welfare losses relative to income is much higher in lower income groups. We also study revenue recycling schemes; when these are included, the combined effect of tax and recycling is progressive. Considering geographical differences; rural areas carry a larger burden of fuel and vehicle taxes than urban areas, and satellites/suburbs carry a larger burden than central cities. However, rural areas are affected remarkably similar regardless of where in the country they are located., QC 20180919

The paper analyses the potential of a surcharge on national fuel taxes as sustainability-oriented own resource to finance the EU budget. Our estimations show that such a surcharge could yield substantial revenues, ranging between € 12.93 billion (for a surcharge of 0.03 €) and 86.2 billion (for a surcharge of 0.2 €) per year. Besides the contribution an EU fuel tax would make to various sustainability-related EU goals and strategies, it would help to address two specific problems inherent in the current EU system of fuel taxation. An EU fuel tax designed as a surcharge on national fuel taxes would decrease the existing tax bias in favour of diesel, as the surcharge would be levied uniformly on gasoline and diesel, which in most EU Member States is taxed at lower rates, alike. Moreover, by increasing national fuel tax rates, the surcharge would – depending on its level – mitigate or even remove the “under-taxation” of fuel in relation to the minimum fuel tax rates stipulated in the EU Energy Tax Directive in a number of Member States, which is caused by the absence of regular inflation adjustment of nominal fuel tax rates.

My dissertation focuses on the environmental regulations in the trucking industry and their impacts in the United States. I explore the causal effects of environmental policies on trucking decisions, the technological challenges of reducing fuel consumption and the optimal fuel taxes to account for the externalities of trucking operation. As the fuel economy standards for medium- and heavy-duty trucks are finalized in August 2016, my dissertation addresses a timely and important issue -- how to effectively reduce greenhouse gases emissions from trucking operation. Three essential policy tools are examined -- taxes, fuel economy standards, and engine replacement schedule. In the first essay, I exploit a rich vehicle-level micro dataset of the U.S. heavy-duty trucking fleets to examine how truckers respond to changes in per-mile fuel cost. Per-mile fuel cost depends on the fuel economy of the vehicle and on the price of diesel, which is taxed at a different rate than other motor fuels. The U.S. Environmental Protection Agency (EPA) categorizes medium- and heavy-duty trucks into two groups - combination trucks and vocational vehicles. They are regulated separately due to their distinctive driving patterns and trip distances. Combination trucks are tractor-trailers weighing more than 26,000 pounds, typically with a body type of either an enclosed box or a platform. They are mostly used for long-haul shipping. Vocational vehicles are straight trucks (with a loading area as part of the vehicle) with gross vehicle weight greater than 10,000 pounds. They travel locally for various professional purposes and include step vans, dump trucks, concrete mixers, etc. My empirical results show that the average medium-run elasticities of vehicle-miles-traveled are -0.23 for combination trucks and -0.27 for vocational vehicles; the average elasticities of payload distance are -0.43 for combination trucks and -0.36 for vocational vehicles. Within each of the two groups, the estimated e

Policy measures in the transport sector have been widely debated during the recent decades, specifically in terms of increasing carbon emissions from passenger transport. Fuel taxes is receiving most receptive consideration by governments, although households tend to respond little to these measures, especially in rural regions. The aim of this paper, which focuses at the gasoline consumption among households, is to develop a model to estimate price and income elasticities in rural and urban regions in Sweden. While obtaining overall price elasticity to be within the range of previous studies, I find that there is a significant variation in price elasticities across regions. As a consequence, these differences might result in unwanted distributive effects.

The security and continued strength of the United States hinges upon the ability of Americans to quench their demand for petroleum. Unchecked consumption, together with over-reliance upon foreign oil-producers who do not share the desire for a strong America, constitutes the nation's largest vulnerability. This is the result of a shortsighted and ineffectual national energy policy that has worked against U.S. interests and unwittingly made adversaries stronger. This research paper exposes fundamental flaws in this policy and argues that continuation of the same would be disastrous. It presents a strategic design for an improved energy campaign that would reduce oil consumption, encourage rapid transformation to alternative energy sources, and place the United States in a controlling position in the global oil market. Four logical lines of operation are proposed that would see the United States use its disproportional demand for oil as a global controlling mechanism. By regulating American consumption of oil through internal controls, the nation can create powerful leverage over global oil production, pricing, and revenues, while steadily weaning America off of petroleum dependence and the elimination of its largest vulnerability., Strategy Research Project.

This article provides an overview of the evolution of Costa Rica's Environmental Services payment programme mechanisms for paying forest owners for the environmental services they provide. The author discusses the historical development of the legal and institutional frameworks for the program mechanisms briefly describes the various sources of funding for the program are briefly described.

This article provides an overview of the evolution of Costa Rica's Environmental Services payment programme mechanisms for paying forest owners for the environmental services they provide. The author discusses the historical development of the legal and institutional frameworks for the program mechanisms briefly describes the various sources of funding for the program are briefly described.

Following the oil-price surge in the wake of Russia's invasion of Ukraine, many countries in the EU are proposing to cut taxes on petrol and diesel. Using standard theory and empirical estimates, we assess how such tax cuts will influence the oil income in Russia. We find that a tax cut of 20 euro cents per liter would increase Russia's oil profits by around 11-17 million Euros per day in the short run and long run. This is equivalent to 4100-6300 million Euros in a year, 0.3-0.5% of Russia's GDP or 7-11% of its military spending. We show that a cash transfer to EU citizens, with an equivalent fiscal burden as the tax cut, reduces these side effects to a fraction.

Following the oil-price surge in the wake of Russia's invasion of Ukraine, many countries in the EU are proposing to cut taxes on petrol and diesel. Using standard theory and empirical estimates, we assess how such tax cuts will influence the oil income in Russia. We find that a tax cut of 20 euro cents per liter would increase Russia's oil profits by around 11-17 million Euros per day in the short run and long run. This is equivalent to 4100-6300 million Euros in a year, 0.3-0.5% of Russia's GDP or 7-11% of its military spending. We show that a cash transfer to EU citizens, with an equivalent fiscal burden as the tax cut, reduces these side effects to a fraction.

Following the oil-price surge in the wake of Russia's invasion of Ukraine, many countries in the EU are proposing to cut taxes on petrol and diesel. Using standard theory and empirical estimates, we assess how such tax cuts will influence the oil income in Russia. We find that a tax cut of 20 euro cents per liter would increase Russia's oil profits by around 11-17 million Euros per day in the short run and long run. This is equivalent to 4100-6300 million Euros in a year, 0.3-0.5% of Russia's GDP or 7-11% of its military spending. We show that a cash transfer to EU citizens, with an equivalent fiscal burden as the tax cut, reduces these side effects to a fraction.

This paper examines the efficiency and distributional effects of fuel tax and feebate policies in the automobile market. I employ a model in which households make two-stage decisions on car ownership and utilization, and I estimate model parameters by combining micro-level data from a household survey and macro-level aggregate data on the Japanese new car market from 2006 through 2013. Interestingly, several system changes in the Japanese feebate created rich variations in vehicle prices across vehicles and over time during the sample period. I use such exogenous variation to overcome the vehicle price endogeneity associated with demand estima?tion. Counterfactual analyses show that the Japanese feebate results in a significant increase in social welfare while augmenting environmental externalities. In particular, the rebound effect induced by the feebate cancels out approximately 7% of the reduction in CO2 emissions that would originally have been attained by the improvement in fuel economy. In addition, I find that the fuel tax at the current tax rate in Japan is 1.7 times less costly than the product tax, an alternative feebate scheme considered in the counterfactuals. I also find that there is no dif?ference in regressivity between the two policies in reducing negative environmental externalities by the same amount.

This paper examines the efficiency and distributional effects of fuel tax and feebate policies in the automobile market. I employ a model in which households make two-stage decisions on car ownership and utilization, and I estimate model parameters by combining micro-level data from a household survey and macro-level aggregate data on the Japanese new car market from 2006 through 2013. Interestingly, several system changes in the Japanese feebate created rich variations in vehicle prices across vehicles and over time during the sample period. I use such exogenous variation to overcome the vehicle price endogeneity associated with demand estima?tion. Counterfactual analyses show that the Japanese feebate results in a significant increase in social welfare while augmenting environmental externalities. In particular, the rebound effect induced by the feebate cancels out approximately 7% of the reduction in CO2 emissions that would originally have been attained by the improvement in fuel economy. In addition, I find that the fuel tax at the current tax rate in Japan is 1.7 times less costly than the product tax, an alternative feebate scheme considered in the counterfactuals. I also find that there is no dif?ference in regressivity between the two policies in reducing negative environmental externalities by the same amount.

Following the oil-price surge in the wake of Russia's invasion of Ukraine, many countries in the EU are proposing to cut taxes on petrol and diesel. Using standard theory and empirical estimates, we assess how such tax cuts will influence the oil income in Russia. We find that a tax cut of 20 euro cents per liter would increase Russia's oil profits by around 11-17 million Euros per day in the short run and long run. This is equivalent to 4100-6300 million Euros in a year, 0.3-0.5% of Russia's GDP or 7-11% of its military spending. We show that a cash transfer to EU citizens, with an equivalent fiscal burden as the tax cut, reduces these side effects to a fraction.

Following the oil-price surge in the wake of Russia's invasion of Ukraine, many countries in the EU are proposing to cut taxes on petrol and diesel. Using standard theory and empirical estimates, we assess how such tax cuts will influence the oil income in Russia. We find that a tax cut of 20 euro cents per liter would increase Russia's oil profits by around 11-17 million Euros per day in the short run and long run. This is equivalent to 4100-6300 million Euros in a year, 0.3-0.5% of Russia's GDP or 7-11% of its military spending. We show that a cash transfer to EU citizens, with an equivalent fiscal burden as the tax cut, reduces these side effects to a fraction.

TA-24, This report provides: (1) an overview of the IFTA and IRP processes for allocating fuel tax revenues across jurisdictions; and (2) an assessment of these systems in regard to their effectiveness at allocating the tax and fee burden among commercial carriers in an efficient and accurate manner. Three aspects of the system were assessed by answering the following questions: (1) Is the system effectively fostering cooperation among the 58 jurisdictions governed by the IFTA and IRP agreements? (2) Is it effectively promoting the allocation of tax burdens and payments among the jurisdictions? and (3) Is it effectively collecting tax payments and preventing tax evasion? Survey results suggest that the answer to the first question is a qualified yes. Respondents (1) perceived IFTA, Inc. to be very effective in encouraging inter-jurisdictional trust and cooperation; (2) were very satisfied with their communications with IFTA, Inc.; but (3) were less satisfied with communications and coordination of tax reconciliation activities with other jurisdictions. In response to the second question, respondents clearly felt that IFTA, Inc. and IRP, Inc. were well run. In fact, the study found a strong belief that taxes are being collected in a fair and equitable manner. Survey respondents also indicated that the IFTA Clearinghouse and Regional Processing Center were effective tax netting organizations. However, the findings also suggest there may be some problems with tax collection and allocation: (1) The audits uncover many problems with compliance with the rules for mileage reporting; and (2) states with high fuel tax rates may be experiencing revenue shortfalls compared to the low tax rate states. There was no indication that legal issues were a significant problem. Indeed, the legal changes made by the states in order to join IFTA and the IRP appear to have been relatively straightforward with no legal problems of any significance afterward.