Template-Type: ReDIF-Article 1.0
Author-Name:  Geir H. M. Bjertnæs
Title:  Efficient Combination of Taxes on Fuel and Vehicles
Classification-JEL: F0
Volume:  Volume 40
Issue:  The New Era of Energy Transition
Year:  2019
Abstract:  A tax on fuel combined with tax exemptions or subsidies for fuel-efficient vehicles is implemented in many countries to reduce greenhouse gas emissions and other negative externalities from road traffic. This study, however, shows that a tax on fuel should be combined with heavier taxation of fuel-efficient vehicles to curb externalities from road traffic. The tax on fuel is implemented in order to curb externalities linked to both consumption of fuel and road use. A heavier tax on fuel-efficient vehicles prevent motorists from avoiding the road user charge on fuel by purchasing fuel-efficient vehicles.   
Handle: RePEc:aen:journl:ej40-si1-Bjertnaes
File-URL: http://www.iaee.org/en/publications/ejarticle.aspx?id=3317
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