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We exploit a fuel tax increase in Portugal to identify its effect on cross-border fuel sales and associated carbon leakage in the Spanish border regions. Using a difference-in-difference strategy, we find that while gasoline sales remained unaffected, diesel sales in Spanish border regions increased by 6–9%. Synthetic control methods confirm these estimates and attribute this differential effect by fuel type to routes frequented by heavy-duty vehicles, with large diesel tanks. We estimate a carbon leakage equivalent to 14–20% of Portugal's annual mitigation commitment for road transport emissions. Our findings imply that heavy goods vehicles' strategic behavior undermines the potential mitigation effects and revenue gains of transport climate policy, underscoring the need for coordinated policies in similar federal or quasi-federal contexts. [ABSTRACT FROM AUTHOR]

Negative externalities of transportation have long been a concern globally, and sustainable transportation is a shared goal among nations. Fuel taxes are regarded as an important economic means for transportation to curb fuel consumption, reduce traffic environmental pollution and realize green transportation. This study constructs a new index, Sustainable Development Efficiency (SDE), which integrates economic, environmental, and social sustainability using the Range Adjusted Measure (RAM) model of non-radial data envelopment analysis. Furthermore, the study employs the system Generalized Method of Moment (GMM) method to estimate the policy impact of diesel fuel tax on transportation SDE in China. The results indicate that a higher intensity of diesel fuel tax indirectly enhances transportation SDE in China by inhibiting the increase in truck ownership and operation in developed provinces regarding road freight transportation. Conversely, in less-developed provinces, the intensity of the diesel fuel tax can indirectly contribute to the increase in SDE by curbing the number of traffic accidents. Regional heterogeneity in SDE is evident: while western China shows potential for growth in road freight transport under the premise of ensuring environmental and social benefits, eastern China should speed up efforts to transform road freight transport into a more environmentally friendly and safer mode of transport. [ABSTRACT FROM AUTHOR]

Household carbon dioxide emissions depend on the household's attributes and location. Wealthier suburbanites drive more and consume more energy at home. In recent years, affluent individuals have been more likely to purchase electric vehicles and install solar panels. Using several datasets from California, we observe that these shifts in consumer behavior have flattened household Carbon Emissions Engel Curves in the transportation sector and the electricity sector. Based on voting data from a 2018 proposition to repeal a fuel tax in California, we document that communities tend to support higher fuel taxes when their vehicle fleet is more fuel‐efficient. [ABSTRACT FROM AUTHOR]

Mauritius is a highly vulnerable country with respect to the negative impact of climate change. In this respect, it is imperative to address environmental issues through various instruments and one particular tool chosen for this purpose is fiscal measures in the form of environmental taxes. Consequently, the objectives of this research are to critically assess the various types of environmental taxes in Mauritius and to provide recommendations to enhance the existing framework on environmental taxation as a policy instrument to alleviate pollution and environment degradation in Mauritius. In particular, the carbon taxation, motor fuel taxes, vehicle ownership taxes, Maurice Ile Durable (MID) levy plastic containers levy and environment protection fee among others will be analysed. The methodology applied in this research is a legal analysis of rules pertaining to environmental taxation in Mauritius. A comparative analysis will also be performed to find out the corresponding legal provisions on environmental taxes in South Africa. Since Mauritius is part of Africa, it becomes relevant to compare how one among the African continent's most powerful economic powerhouses being South Africa, is dealing with environmental degradation and whether Mauritius may implement some of them. [ABSTRACT FROM AUTHOR]

The yellow vest movement in France was triggered by a fuel tax increase. The increase was designed to reduce petrol consumption and hence emissions. However, the costs of this policy were unequally distributed among citizens. The yellow vests illustrate that abstract support for public action against climate change is not enough to secure support for concrete policies. These policies run the risk of being opposed by citizens when their costs are unevenly spread across society. Through a survey experiment on Norwegian citizens, we analyse how different policy characteristics generate 'support gaps' within society. Particularly, we contrast two stylized profiles: 'urban élites' (high-educated urbanites) and 'yellow vests' (low-educated ruralites). We find that opposition rises with the individual cost of the policy but in a non-linear way. Environmental earmarking and invoking personal responsibility widen the gap between yellow vests, urban élites, and the rest of society. Redistribution to low-income households and invoking international commitments help to bridge such gaps. We argue that, instead of focusing on aggregate levels of support, both policymakers and academics should rather pay attention to the polarizing effects of certain policy attributes. [ABSTRACT FROM AUTHOR]

Kuwait suffers from severe air pollution levels making it on the top ten list worldwide pollution wise based on the records of Air Quality Index (AQI). The transport and energy sectors represent the major players in contributing to the current unprecedent pollution situation Kuwait is suffering from. The unique harsh arid weather associated with high levels of humidity, high temperatures and frequent sandstorms in the region intensifies the extent of the pollution crisis. There is almost no single study in the literature that focused on testing different scenarios on transport and energy sectors effects into the reduction of prevailing pollution levels in this region of the world. This work comes to fill this gap in the literature. A simplified system dynamics model (covering the years from 2004 to 2040) was developed for Kuwait to simulate the effects of different urban transportation management policies on reducing CO 2 and greenhouse gas emissions levels. Two policies were tested: a gasoline tax with low, medium, and high rates, as well as a free bus service. Combined policies resulting from merging the gasoline tax at different levels with the free bus service were also tested, which outperformed the two separate plans being implemented alone. The best combined strategy achieved was to encourage citizens to use public transportation by utilizing the free bus service rather than using private vehicles in addition to impose a high fuel tax. This action was anticipated to reduce CO2 emissions by 14 million metric tons and the number of private vehicles by 3 million vehicles by the end of 2040. Such approach proved to be helpful in reducing the pollution levels and in turn decrease the severity of global warming phenomenon in the Arabian desertic peninsula. • A simplified system dynamics model was developed. • It simulated the effects of transportation policies on reducing CO 2 emissions. • 2 policies covered: gasoline tax with low, medium, high rates, and free bus service. • A combination policy was also tested, which outperformed the two separate plans. • Both policies are recommended to reduce fuel consumption, and CO 2 emissions. [ABSTRACT FROM AUTHOR]

Fuel tax levy is an appropriate measure to reduce motor vehicle pollution since the government can't directly tax drifting source of pollution. However, this action will affect every part of residents' life, we should take many factors into consideration. This paper is devoted to the environmental and economic effects of various fuel taxes for different departments based on Beijing economy-energy-environment computable general equilibrium (3E-CGE) model. Researches show that raising fuel tax rates for production & import and consumption contributes to air pollution and emission reduction. However, tax increase may hinder economic growth. Higher tax on production & import will lead to stagflation while on consumption will lead to depression. Besides, the influences on different industries also vary. My conclusion is that government should levy fuel taxes as well as pay subsidies to optimize industrial structure and decrease the impact on economy. [ABSTRACT FROM AUTHOR]

In the face of rapid expansion of China's automobile ownership, serious air pollution, increasing energy consumption, method and policy that promote energy conservation and emission reduction of automobiles have become widespread concerns at present. In this context, this study introduces the reform of vehicle purchase tax, vehicle and vessel tax, and fuel tax in China, and empirically compares the energy saving and emission reduction effects of the three taxes. The results show that the emission reduction effect of the purchase tax reduction is more significant. Moreover, the effect of the purchase tax reduction on reducing air pollutant emissions shows a "U" shaped dynamic change as the pollution level in cities increases and then decreases. [ABSTRACT FROM AUTHOR]

This research work assesses the effects of tax revenue on the economic growth of Nigeria utilizing time series data spanning from year 2000 till 2021. The study’s specific goal is to evaluate the influence of hydrocarbon tax, corporation income tax and Value Added Tax on Nigeria’s economic growth. The study employs secondary form of data which have been sourced from CBN statistical bulletin and published Federal Inland Revenue Statement. Ex-post facto research design is used for this study. The data collected are analyzed and tested for unit root using Augmented Dickey Fuller method. The study variables which comprise GDP, PPT, CIT & VAT are found to be stationary at first difference. Thus, a Johansen co-integration test is also conducted and it reveals a long-run relationship. Consequently, the study utilizes the Vector Error Correction Model to evaluate the effects of PPT, CIT and VAT on GDP. The findings reveal that PPT and VAT have positive and significant effects on GDP. It also reveals that CIT has a negative and significant effect on GDP. Based on these findings, the inquiry suggests that trainings and workshops should be organized by government tax agencies to the Nigerian public and companies on the importance and benefits of tax revenue to the economy. The tax authorities should also endeavour to encourage companies to pay tax so as to improve the growth of the economy which the companies are meant to benefit from as part of government’s fulfilment of its social responsibilities.

The balance between economic development and environmental governance has always been the focus of attention, and this has become a key issue facing in China. In recent years, the means of improving the environment through taxation are common, and it is more in line with China's national conditions. Carbon tax and fuel tax are considered to be effective environmental supervision measures, and the implementation of this policy is bound to have a critical impact on the advance of economic level. However, the implementation effects of these two mechanisms may be different, and they may also have various effects on regional development. Therefore, based on the panel data of China's 29 provinces from 2008 to 2018, we adopt the spatial autocorrelation method to explore the relationship between the economic levels of various areas. Then, establishing the panel spatial econometric model of economic growth and carbon tax, economic growth and fuel tax respectively to compare the implementation effects of the two tax policies. It turns out that there is a positive correlation between the economic growth of 29 provinces in China. And whether choosing to levy carbon tax or fuel tax, they all have their own advantages and disadvantages. Finally, according to the results of empirical analysis results, some relevant policy suggestions are put forward. [ABSTRACT FROM AUTHOR]

Excise taxes on fuel consumption may serve an important role in the abatement of CO2 emissions. Fuel tax has been a significant revenue-raising tool in Turkey for years. The present paper investigates whether there is a relationship between carbon dioxide emissions and public revenues from excise taxes on fuel consumption in Turkey by employing an asymmetric nonlinear cointegration test and error correction model that is a novel methodology proposed by Hepsag Commun Stat-Simul Comp 50:400-412, (2021). We collect our sample that consists of annual data on CO2 emissions, GDP, and fuel tax in Turkey from 1985 to 2018. The empirical findings display that there exist relationships among economic growth, CO2 emissions, and fuel tax supporting the environmental Kuznets curve (EKC) hypothesis in the short and long run. However, we find out that fuel tax is statistically insignificant and has no impact on CO2 emissions. Because a significant carbon dioxide reduction is not possible by fuel taxation, by converting the excise tax on fuel consumption into a carbon tax, a considerable emission reduction can be provided efficiently. [ABSTRACT FROM AUTHOR]

We simultaneously optimize multiple tax instruments (fuel tax, car-ownership tax, and tolls) when these instruments are used as public funds with distortionary labor tax, accounting for pollution, congestion, accident externalities, and fiscal constraints of the tax-related agency and the toll-collecting agency. We quantitatively optimize taxes and tolls using parameters for Japan under three scenarios: (1) imposition of peak and off-peak tolls at different rates and simultaneous optimization of all tax instruments; (2) optimization of only car-related taxes without consolidation of the toll-collecting agency's fiscal constraints; (3) optimization of only fuel tax. We find that peak toll and fuel tax should be higher, and off-peak toll and car-ownership tax should be lower than the current rate under Scenario 1. Scenarios 1 can improve welfare by 1000 to 2400 dollars/car, and Scenarios 2 and 3 can achieve more than 90% and 20–60% of the welfare gain in Scenario 1, respectively. [ABSTRACT FROM AUTHOR]

• Speed externalities are usually quoted to justify highway speed limits but they could already be internalized if a pre-existing policy were in place that is related to speed. • We develop an economic equilibrium model of highway speed choice accounting for speed externalities, a speed related behavioral anomaly, and a pre-existing fuel tax. • In Germany where fuel taxes are relatively high, speed externalities are largely internalized and the externality rationale in favor of speed regulation does not apply to the majority of drivers. • Nevertheless, a moderate speed limit on German highways of 130 km/h would probably not compromise economic efficiency, at least as long as the share of diesel cars is significant. • Lack of rationality always justifies speed regulation unless appropriate "nudges" are available. Speed externalities – the impacts that a driver's speed choice imposes on others – are usually quoted to justify highway speed regulation in the form of maximum speed limits. However, speed externalities could already be internalized if a pre-existing policy were in place that is related to speed, questioning the traditional rationale supporting speed limits. Given the relationship between speed and fuel consumption and the omnipresence of fuel taxes around the world, it comes as a surprise that pre-existing taxes on motor fuel are completely missing in the debate on the general appropriateness of speed regulation. In this paper we develop an economic equilibrium model of highway speed choice accounting for (i) a market failure – speeding externalities capturing the fact that drivers do not internalize the adverse consequences of speeding on other highway users and the society as a whole; (ii) a famous speed related behavioral anomaly – causing adverse effects drivers impose on themselves by falsely predicting the time saving potential of speed; (iii) a pre-existing fuel tax – closing the wedge between the privately and socially optimal speed. The latter creates a 'government feedback effect' reflecting the positive feedback effect of speed on fuel tax revenue and so the broader beneficial fiscal impacts of speed choice ignored by drivers. Numerical computations for Germany indicate a dominant 'government feedback effect' ((iii) outweighs (i)) for mean speeds up to around 120 km/h presuming fully variable travel time budgets and beyond that speed level when drivers put (some of the) travel time savings from speeding into more highway traveling. This implies that speed externalities are largely internalized and that the externality rationale in favor of speed regulation does not apply to the majority of drivers. Nevertheless, a moderate speed limit on German highways of 130 km/h would probably not compromise economic efficiency, at least as long as the share of diesel cars is significant. Generally, when drivers are subject to lack of rationality leading to excess speeding, (iii) is not able to outweigh (i). Then, speed limits remain highly warranted provided that appropriate "nudging" is not available. The numerical finding is likely to hold for a large number of European countries too but probably not for North American countries where fuel taxes are considerably lower. [ABSTRACT FROM AUTHOR]

This paper explores U.S. public opinion about raising new federal transportation revenues, using the results from a national, random-digit-dial phone survey that was conducted for 7 years, from 2010 to 2016. The annual surveys tested support for seven versions of a higher federal gasoline tax and two versions of a hypothetical mileage fee. We used both univariate and multivariate analysis to look at how support levels vary according to the specific features of a transportation tax, respondent characteristics, and time. The analysis shows that support for the taxes is tightly linked to the specifics of a tax proposal. For example, far fewer people supported a flat-rate mileage fee for general transportation purposes than supported a gasoline tax rate increases with the revenues dedicated to improving maintenance or safety. The population subgroups most likely to consistently support transportation taxes include young people, Democrats, drivers of fuel-efficient vehicles, and respondents who wanted to see government improve safety, expand transit, and improve maintenance. However, the multivariate analysis shows little variation among subgroups with respect to support for the least and most popular taxes. Finally, support for raising transportation revenue has increased modestly since 2010. [ABSTRACT FROM AUTHOR]

Abstract We investigate the market equilibrium and welfare effects of a fuel tax in China relative to an alternative policy instrument that rations the number of new automobile sales through auctioned quotas. Unlike those of previous studies, our modeling approach incorporates both household car purchase and utilization decisions, the latter of which have been ignored in previous studies on China's fuel tax. Ignoring this margin of choice will underestimate the fuel tax's ability to mitigate externalities. Using detailed household-level panel data and a fixed effects econometric specification, we estimate the fuel price elasticity of vehicle miles traveled is −0.59 on average. The results of the counterfactual analysis suggest that a 51% increase in tax-inclusive gasoline prices will reduce car sales by 24.9% but increase social welfare to a degree that depends on vehicles' lifetime. We find that compared to auctioned quotas, the fuel tax results in greater car sales but higher social welfare. [ABSTRACT FROM AUTHOR]

Under pressures related to economic growth and environmental protection, China is facing an increasingly severe "environment–health–poverty" trap risk. Fuel taxation is generally considered an effective policy to counter such a risk. Since 2009 China has raised the fuel tax rate many times to enhance tax reform. However, the effects of this policy remain unknown. Therefore, it is vitally important to estimate the impacts of China's current fuel taxation policy on environment, public health and the national economy. As the first attempt in existing literature on China, this paper builds a general equilibrium framework with the feedback effect of public health on economy. We find that that the fuel tax policy benefits the adjustment of the economic structure and improves human health; however, it is detrimental to economic growth, public welfare and price stability. In this sense, it plays a limited role in reducing the trap risk and might not be sustainable in the long term. [ABSTRACT FROM AUTHOR]

Abstract State-of-the-art travel demand models for Norway have been run with the aim of revealing the equity effects of selected policy measures for greenhouse gas abatement. The Oslo Intercity Regional Model, comprising roughly 43 per cent of Norway's five million population, was used to study short distance trips in southeastern Norway, i. e. in and around the capital city of Oslo. The NTM6 model for domestic, long distance travel was used to analyze domestic trips longer than 70 km one way. Both of these are network models of travel demand, predicting car ownership, trip frequency, destination choice, mode choice and route choice under user specified input assumptions. The following three policy options have been studied: (i) tripled toll rates and ferry fares everywhere in Norway, (ii) a NOK 0.20 (= € 0.024) per vehicle km road charge or equivalently higher fuel tax, and (iii) abolishment of the commuter tax credit, which in 2014 amounted to roughly € 0.05 per km for long-distance commuters. By design, these three policy options give rise to similar reductions in CO 2 emissions from travel. While option (i) turns out to be highly inefficient, options (ii) and (iii) appear, in a partial travel demand analysis, to be welfare increasing even before CO 2 abatement benefits. However, when the policy options are ordered according to their equity effects, the ranking becomes completely reversed. The abolishment of the commuter tax credit appears to hit people in low income neighbourhoods five to fifteen times harder than those living in high income zones. The fuel tax increase gives rise to corresponding inequity ratios between three and seven. The main explanation is that residents of remote, low income areas generally sustain longer commutes, and also to a larger extent depend on their cars for commuting than do workers in densely populated urban or suburban districts. Highlights • Increased fuel tax could be welfare enhancing in view of external costs of road use and the marginal cost of public funds. • The same applies to a revocation of the commuter tax credit. • But both of these policy options are distinctly regressive, as measured by their impact in low vs. high income zones. [ABSTRACT FROM AUTHOR]

Abstract We analyse distributional effects of four car-related tax instruments: an increase of the fuel tax, a new kilometre tax, an increased CO 2 -differentiated vehicle ownership tax, and a CO 2 -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. Highlights • The car-tax instruments are progressive over most of the income distribution. • With two different recycling schemes, the tax instruments are clearly progressive. • Rural areas carry a larger burden from increased car taxes than urban areas. • The burdens from increased car taxes are similar in all rural areas across Sweden. [ABSTRACT FROM AUTHOR]

Australians are one of the world’s highest per capita emitters of greenhouse gases, yet the country’s target for emissions reductions by 2030 remains modest. This paper looks at policy options for Australian cities to deliver faster emissions reductions than the national commitment level. The main focus is on an accelerated reduction in emissions from urban road transport, through technological improvements and behaviour changes. Targets are proposed for improved emissions intensities, to bring Australia much closer to US and EU performance expectations. A range of behaviour change measures is then tested on Melbourne and Sydney, the Sydney analysis using MetroScan-TI, an integrated evaluation framework, to explore how behaviour changes might enhance emissions outcomes. The potential contribution of public transport is a particular focus. The paper concludes that, with sufficient political will, Australia could reduce its 2030 road transport emissions to 40% below 2005 levels. This is a much larger reduction than the current 26–28% Australian target but is more consistent with longer term pathways to acceptable carbon budgets. [ABSTRACT FROM AUTHOR]

Increasing electric vehicle (EV) adoption poses serious concerns about the long-term adequacy of highway revenues. This paper addresses not only the fuel tax revenue loss across all vehicle classes but also proposes alternative funding mechanisms to recover the loss. Data on average vehicle miles travelled per vehicle, fuel taxes, vehicle registrations, fuel efficiency and consumption are used. The case study location is Indiana, U.S., and analysis period is 2021–2035. The optimal annual fees to recover the loss for each battery EV class range from $241 (in 2021) to $342 (in 2035) for automobiles, $344 to $435 for light-duty trucks, $1246 to $1488 for buses, $969 to $1243 for single-unit trucks, $6192 to $7321 for combination trucks, and $26 to $35 for motorcycles. For the most likely scenario (5% EV market penetration (EVMP) for light-duty vehicles and 30% EVMP for medium-/heavy-duty vehicles), the statewide fuel tax revenue decreases by 21% from 2030 to 2035. The paper also discusses a vehicle-miles-travelled fee and a pay-as-you-charge fee. The study framework is designed to facilitate replication in other states, and the results can provide useful information for assessing the adequacy of the existing revenue models and efficacy of prospective mitigation measures. • Examined EV impact on fuel tax revenue per vehicle class. • For 5–30% EVMP, fuel tax revenue will decrease by 21% by 2035, relative to 2030. • Estimated the optimal EV fee per vehicle class to recover lost revenue. • For implementation, fee could be based on extent of travel and electricity use. [ABSTRACT FROM AUTHOR]

The continued increase in urbanization and vehicle ownership poses an increasing challenge in curbing the rising energy consumption and CO 2 emissions in Malaysia. For more than a decade, road vehicles have been the leading contributor in the country, due mainly to their heavy reliance on petroleum products, particularly gasoline and diesel. The efficient utilization of petroleum products becomes paramount in reducing Malaysia’s overall CO 2 emissions in the land transportation sector. The timely abolition of petroleum product subsidies in 2014 may provide a financial source to support the improvement of petroleum product efficiency. The primary purpose of this paper is to examine the impact on economic growth and sectoral performance with fuel subsidy savings being reallocated to the biofuel industry for research and development purposes. The study then investigates whether an environmental tax on petroleum products could induce more energy saving and emission control. This research applies the computable general equilibrium modeling for the simulation, as it takes into account the interaction between petroleum products and the economy as a whole. The Malaysia Input-Output Tables 2010 is the main database used in the simulation. The simulation results found that fuel efficiency improvement could produce a double dividend effect with simultaneous benefits on the economy and environmental quality. A simultaneous implementation with fuel tax policy appears to be one suitable complementary measure for a further emission cut. However, sufficient compensation schemes might be necessary to stimulate economic activities over time. Based on the simulation results, policymakers should emphasize fuel efficiency improvement as a crucial strategy to control the rising energy consumption and emissions in Malaysia. [ABSTRACT FROM AUTHOR]

We examine the effect of an increase in aviation fuel tax on reductions in fuel consumption and carbon emissions using data from the US airline industry. The results of simultaneous quantile regression using an unbalanced annual panel of US carriers from 1995 to 2013 suggest that the short-run price elasticities of jet fuel consumption, which are negative and statistically significant for all quantiles, vary from −0.350 to −0.166. The long-run price elasticities show a similar pattern and vary from −0.346 to −0.166, though they are statistically significant only for the 0.1, 0.2, 0.3, and 0.5 quantiles. The results suggest that the amount of the reduction of fuel consumption and CO 2 emissions would be smaller in the longer term. Our calculation, using values from 2012, suggests that an increase in aviation fuel tax of 4.3 cents, which was the highest increase in aviation fuel tax in the US during the analysis period, would reduce CO 2 emissions in the US by approximately 0.14–0.18% in the short run (1 year after the tax increase). However, perhaps due to the rebound effect, the percentage reduction in CO 2 emissions would decrease to about 0.008–0.01% in the long run (3 years after the tax increase). [ABSTRACT FROM AUTHOR]