Distribution of the transit tax burden in five U.S. metropolitan areas

As transit subsidies increased twelve-fold in the United States between 1970 and 1980, metropolitan areas responded in very different ways to the challenge of financing burgeoning transit costs. The variety of approaches to transit finance has led to variation in the income-redistributive impacts of taxation. This paper reports on the results of disaggregate analysis of transit tax incidence in Chicago, Portland, northern New Jersey, San Antonio, and Phoenix. In cases where alternative tax shifting assumptions can be made, a range of tax burden distributions is calculated. Causes of the variation in redistributive impact are discussed. The analysis concludes by comparing the regressivity of financing transit through higher fares with the regressivity of taxes needed to support subsidies.     

Evaluating policies to reduce greenhouse gas emissions from private transportation

This paper proposes a model system to forecast household greenhouse gas emissions (GHGEs) from private transportation. The proposed model combines an integrated discrete-continuous car ownership model with MOVES 2014. Four modeling components are calibrated and applied to the calculation of GHGEs: vehicle quantity, vehicle type and vintage, miles traveled, and rates of GHGEs. The model is applied to the Washington D.C. Metropolitan Area. Three tax schemes are evaluated: vehicle ownership tax, purchase tax and fuel tax. We calculate that the average GHGEs per vehicle is 5.15 tons of carbon dioxide-equivalent (CO₂E) gases. Our results show that: (a) a fuel tax is the most effective way to reduce vehicle GHGEs, especially for households with fewer vehicles; (b) a purchase tax reduces vehicle GHGEs mainly by decreasing vehicle quantity for households with more vehicles; and (c) an ownership tax reduces vehicle GHGEs by decreasing both vehicle quantity and miles traveled.     

The tax treatment of company cars, commuting and optimal congestion taxes

In Europe, the preferential tax treatment of company cars implies that many employees receive a company car as part of their compensation package. In this paper, we consider a model in which wages and the decision whether or not to provide a company car are the result of direct negotiation between employer and employee. Using this framework, we theoretically and numerically study first- and second-best optimal tax policies on labour and transport markets, focusing on the role of the tax treatment of company cars. We obtain the following results. First, higher labour taxes and a more favourable tax treatment of company cars raise the fraction employees that receives a company car; congestion and congestion tolls reduce it. Second, in countries that provide large implicit subsidies to company cars, eliminating the preferential tax treatment of company cars may be an imperfect but quite effective substitute for currently unavailable congestion tolls. The numerical illustration, calibrated using Belgian data, suggests that it yields about half the welfare gain attainable through optimal congestion taxes. Third, the favourable tax treatment of company cars justifies large public transport subsidies; the numerical results are consistent with zero public transport fares. Finally, we find that earlier models that ignored the preferential tax treatment of company cars may have substantially underestimated optimal congestion tolls in Europe. The numerical illustration suggests that about one third of the optimal congestion toll we obtain can be attributed to the current tax treatment of company cars.     

Will a kilometre tax in Sweden affect its sawmill industry? A note

The paper offers quantitative ‘worst case’ assessments of expected effects of a kilometre tax in Sweden covering the sawmill industry using available price elasticities. The results, assuming that sawmills pay the whole tax burden, indicate that production losses in the industry would follow the implementation of such a tax.     

A model system for the assessment of the effects of car and fuel green taxes on CO2 emission

This study aims at developing a model system to examine the changes in the car market configuration, the life cycle CO₂ emission from automobile transport and the tax revenues due to different taxation policies. The model system specifically determines the effect of varying the weights of the tax components in the stages of a) car purchasing, b) car owning, and c) car using to the changes in the car class and age mix and the car users' driving pattern and behavior towards car class choice and decommissioning. Five sub-models comprise the model system, formulated using car ownership related data in Japan from 1980 to 1994. Performance tests conducted against the sub-models generally yielded encouraging results. The sensitivity analysis identified car usage tax as the most significant parameters in reducing CO₂. An increase in, ownership tax, on the other hand, significantly results to a shift to smaller cars, while the propensity to decommission and repurchase can be reduced by increasing the purchase tax and can be decreased by increasing the ownership tax. The model system was utilized to determine the impact of the 1989 tax reform and to forecast future scenarios using different taxation schemes. The model system is being further developed for possible future application in other countries.     

The impact of a carbon tax on international tourism

A simulation model of international tourist flows is used to estimate the impact of a carbon tax on aviation fuel. The effect of the tax on travel behaviour is small: A global tax of $1000/t C would change travel behaviour and reduce carbon dioxide emissions from international aviation by 0.8%. A carbon tax on aviation fuel would particularly affect long-haul flights, because of high emissions, and short-haul flights, because of the emission during take-off and landing. Medium distance flights would be affected least. This implies that tourist destinations that rely heavily on short-haul flights or on intercontinental flights will see a decline in international tourism numbers, while other destinations may see international arrivals rise. If the tax is only applied to the European Union, tourists would stay closer to home and European tourism would grow at the expense of other destinations. Sensitivity analyses reveal that the qualitative insights are robust.     

Net tax incidence for urban public transit subsidies in New Zealand

This paper examines the impact of policy changes in the funding of New Zealand public transit modes.These changes, introduced in 1983, are evaluated in terms of the net incidence of public transit subsidy assistance, taking into account its source of funding and the income class of those commuters benefiting from the subsidy. The general conclusion is that the net incidence of subsidy assistance remains progressive (i.e., a transfer from high to low income commuters) following the introduction of shared funding on the predominant public transit modes (rail and bus), sourced from income tax (central government) and property tax (regional/local government). However, because of the predominance of medium to high income commuters on rail vis-a-vis bus and the traditional source of funding on these modes in terms of income tax (a progressive tax source) and property tax (a regressive tax source), the degree of progressivity previously associated with public transit subsidies has now substantially reduced.The analysis and opinions expressed in this paper are the responsibility of the author alone and do not purport to represent the views of the Ministry of Transport.     

Does a carbon tax affect the feasibility of Arctic shipping?

The Arctic route has huge potential for shipping between Europe and Northeast Asia with significant savings in transit time and distance. However, GHG emissions from shipping would harm the environment of Arctic area. Potential Market Based Measures of GHG emission reduction (such as carbon tax) are under consideration but they may affect the economic viability of Northern Sea Route (NSR) for containerships. This paper investigates the economic viability of NSR against Suez Canal Route (SCR) under 2 proposed carbon tax schemes (fixed vs. progressive). Three different fuel oil types (Heavy Fuel Oil, Light Fuel Oil, Liquified Natural Gas) are used as main bunker fuel for the calculation of economic feasibility. Our result reveals that when there is no carbon tax on NSR nor SCR, or both routes are under a carbon tax scheme, no matter fixed or progressive, NSR is more economically viable, regardless of fuel type choice. When only NSR is under a carbon tax scheme, the viability depends on specific carbon tax scheme and fuel choice, but for the majority of containership sizes, NSR has lower unit cost. The result also suggests that for a given route, a progressive scheme in preferable than a fixed one and LNG would be an appealing fuel with lower unit cost.     

Vehicle type choice under the influence of a tax reform and rising fuel prices

Differentiated vehicle taxes are considered by many a useful tool for promoting environmentally friendly vehicles. Various structures have been implemented in several countries, e.g. Ireland, France, The Czech Republic, and Denmark. In many countries the tax reforms have been followed by a steep change in new vehicle purchases toward more diesel vehicles and more fuel-efficient vehicles. The paper analyses to what extent a vehicle tax reform similar to the Danish 2007 reform may explain changes in purchasing behaviour. The paper investigates the effects of a tax reform, fuel price changes, and technological development on vehicle type choice using a mixed logit model. The model allows a simulation of the effect of car price changes that resemble those induced by the tax reform. This effect is compared to the effects of fuel price changes and technology improvements. The simulations show that the effect of the tax reform on fuel efficiency is similar to the effect of rising fuel prices while the effect of technological development is much larger. The conclusion is that while the tax reform appeared in the same year as a large increase in fuel efficiency, it seems likely that it only explains a small part of the shift in fuel efficiency that occurred and that the main driver was the technological development.     

Six years of CO2-based tax incentives for new passenger cars in The Netherlands: Impacts on purchasing behavior trends and CO2 effectiveness

There is growing evidence that consumers respond more effectively to upfront price signals, such as vehicle purchase taxes and feebate policies, and to tax incentives that are more salient than others, such as company car taxes graded by CO₂ emissions. This paper examines tax changes in The Netherlands, which are among the most stringent and most salient in Europe, and assesses the ex-post purchasing impacts and CO₂ effectiveness of six years of CO₂-based tax incentives for low-carbon cars in The Netherlands. Dutch tax incentives resulted in 13 g/km, or 11% lower average CO₂ emissions in 2013. The Netherlands has moved from the 12th position before the tax changes in 2007 to become Europe’s number one in terms of the lowest average new car CO₂ emissions and highest share of electric vehicles in 2013. Tax incentives for new cars sold between 2008 and 2013 have resulted in 4.6 million tons of potential lifetime CO₂ abatement at the cost of a drop in tax revenues of 30–50%. However, when corrected for the Dutch policy-induced increasing real-world fuel-economy shortfall and leakage of carbon reduction potential through vehicle export of low-carbon cars, only 3.5 million tons or 75% of the CO₂ reduction remains. CO₂-based tax incentives for company cars seem to have contributed the most to the observed turnaround in purchasing behavior towards lower CO₂-emitting passenger cars.     

How much should gasoline be taxed when electric vehicles conquer the market? An analysis of the mismatch between efficient and existing gasoline taxes under emerging electric mobility

The taxation of gasoline is characterized by large variability across countries and recent research has analyzed existing gasoline tax levels from an economic efficiency point of view focusing on conventional internal combustion engine vehicles. Most studies find that existing fuel tax rates do not coincide with economically efficient levels. As long as policymakers do not take action to reduce the resulting efficiency gap, there will be an ongoing welfare loss to the economy. However, the composition of passenger car fleets will probably be subject to fundamental changes in the (near) future due to the emergence of electric mobility. This raises the question of whether the mismatch between current and efficient fuel taxation will persist, shrink, or even exacerbate under emerging electric mobility. This paper aims at answering this question by determining the structure and level of optimal gasoline taxes in the presence of electric vehicles (EVs). First, the optimal (nationwide) gasoline tax is analytically derived employing a general equilibrium approach. It is shown that differences in traffic related marginal external costs among fuel powered cars and EVs affect the corrective Pigouvian component of the optimal gasoline tax while a differential tax treatment influences the fiscal rational of the tax. Second, the model is applied to Germany using differentiated data on e.g. external costs and behavioral responses. Under a wide range of scenarios, the present analyses indicate a strong relationship between optimal gasoline taxes and electric mobility, calling for a downward adjustment of efficient gasoline taxes. The effect is mainly driven by financial incentives for purchasing and using EVs. Since fuel is likely to be undertaxed in many countries, the emergence of electric mobility will therefore close the gap between gasoline taxes in place and economically efficient taxes. On the other side, it will increase the efficiency gap in those countries where gasoline is overtaxed. This also has important implications for policy concerned with environmental objectives. Pushing electric mobility seriously and at the same time taxing gasoline efficiently could actually prevent sufficient CO₂ emission savings. However, at least in the case of Germany, even a downward adjusted optimal gasoline tax under electric mobility is likely to be higher than the current (non-optimal) tax.     

Parking taxes: Effectiveness,legality and implementation,some general considerations

This paper evaluates the pros and cons of implementing parking pricing to reduce auto use and traffic through parking taxes. Taxes on parkers and the providers are evaluated in terms of effectiveness in influencing auto use, operations of the tax, and the legality as well as acceptability of the options. The intent is to help local governments evaluate parking tax approaches.Abbreviation TDM Transportation Demand Management     

燃油税费改革对广西道路货运的影响研究

文章阐述了燃油税费改革的目的及意义,介绍了广西道路货物运输的基本情况,并依托大量调查统计资料,对比分析了燃油税费改革对广西道路货物运输市场、运输成本及企业管理的影响,提出了调整公路货运企业运输车辆组成结构,建立公路货物运输信息交易平台和探索新型公路货运企业经营模式的对策措施。     

The impact of transport pricing policy on individual energy consumption: a modeling case study in Kumamoto

To investigate the impact of traffic pricing policies on energy consumption, this study shows a microeconomic quantitative analysis scheme to simulate individual consumption behaviors from a microeconomic viewpoint. Energy consumption is estimated based on individual demand of non‐mobility goods and mobility goods under nine policy scenarios based on strategies of gasoline tax adding and mass transit fare reduction independently or combined. Results show that gasoline tax adding has strong effects on consumption behaviors. Energy consumption reduces mostly because of less consumption of non‐mobility goods and car trips. However, policy of mass transit fare reduction has limited impact on energy saving because consumption of non‐mobility goods and mass transit trips increases, but the number of car trips decline by only a small percentage. Comparing with single‐type policy, policies that combined gasoline tax adding and mass transit fare reduction show less energy consumption. Findings suggest that policies that increase cost of car trips, such as gasoline tax adding, are very helpful to reduce the consumption of non‐mobility goods and car trips, which contribute to less energy consumption. However, reducing cost of mass transit trips suggests limited effect on energy saving. Copyright © 2015 John Wiley & Sons, Ltd.     

The development of a policy for road tax in Turkey, using a genetic algorithm approach for demand estimation

This study deals, first, with estimation of transport demand based on Genetic Algorithm (GA) approach, and then deals with the evaluation of the road tax system in Turkey. It proposes an alternative road tax policy. The total transport demand is estimated based on population, Gross Domestic Product per Capita (GDPPC), and vehicle-number. Three forms of the Genetic Algorithm Transport Demand Estimation for Tax Revenues (GATDETR) are developed, of which one is linear, and the second and third are exponential forms of the mathematical expressions. The best-fit GATDETR model in terms of total minimum relative average errors between observed and estimated values are selected for future demand estimation. The evaluation of the road tax system and policy proposal is made based on estimated demand. The Distance-Based-Taxation (DBT) system is proposed in order to control highway transport. With the DBT system, some road users may wish to use railway. Thus, we re-organize the railways in order to meet the demand, but this requires new fund. The DBT system may help to create to this fund. It may also help to develop fair-taxation for the road users. Results show that the GA can be used to model transport demand and hence income tax in future transports planning. This study also suggests that planning the taxation in highway transport may help to ease funding problem of railway system.     

Trade-offs in CO2-oriented vehicle tax reforms: A case study of Greece

We estimate demand for automobiles in Greece using a model of product differentiation and use the model to evaluate carbon-based tax schemes that could shift consumer purchases towards low CO₂ emission cars. We find that careful policy design, supported by appropriate modeling, can bring about substantial environmental benefits without losing control of economic parameters such as public finances or firm profits. This contrasts to the results of recent vehicle tax reforms in European countries, which turned out to be more costly than initially expected.     

Bunker levy schemes for greenhouse gas (GHG) emission reduction in international shipping

A fuel levy is one of the market-based measures (MBMs) currently under consideration at the International Maritime Organization. MBMs have been proposed to improve the energy efficiency of the shipping sector and reduce its emissions. This paper analyses the economic and environmental implications of two types of levy on shipping bunker fuels by means of an analytical model built on the cobweb theorem. A unit-tax per ton of fuel and an ad-valorem tax, enforced as a percentage of fuel prices, are examined. In both cases, a speed and fuel-consumption reduction equivalent to an improvement in the energy efficiency of the sector would be expected as a result of the regulation enforcement. The speed reduction in the unit-tax case depends on fuel prices and the tax amount, whereas in the ad-valorem case it relies upon the enforced tax percentage.Both schemes lead to industry profit decline, the extent of which depend on the structure of the levy and market conditions. Since there is concern that the costs resulting from the policy will be passed from shipping companies to their customers along the supply chain, the paper dwells on how the costs arising from the enforcement of the levy will be actually allocated between ship-owners and operators, and cargo-owners. In a market characterised by high freight rates and with no or limited excess capacity, a higher percentage of the total tax amount is transferred from ship-owners to shippers. In case of a recession the opposite happens.     

Value of time – A citizen perspective

The dominant empirical approach to infer Value of Time is based on experiments in which respondents are typically asked to make hypothetical travel choices as if they were paying travel costs from their own budget, in exchange for personal travel time gains. However, many scholars have argued that such travel choice decisions of individuals in their role of consumer of mobility are likely to be a poor proxy of how they in their role of citizen believe government should spend tax money to generate travel time gains for large numbers of travelers. So far, this possible deviation between what we call ‘consumer VoT’ and ‘citizen VoT’ has not been studied empirically. In this paper, we fill this gap, by designing a Stated Choice experiment with eight different frames; some representing a typical consumer choice situation, others gradually approaching a citizen perspective. We find that individuals’ willingness to pay from previously collected tax money for travel time gains created by a government policy, is significantly higher than their willingness to pay, from their after tax income, for time gains obtained by choosing a different route. This result implies that citizen VoT is higher than consumer VoT. This difference does not stem from a stronger willingness to spend previously collected tax money compared to spending one’s own income, but from a difference in the value attached to travel gains: a travel time gain resulting from government action is valued more than the same travel time gain obtained by one’s own route choices. This and a range of other empirical results are discussed in depth, in light of the conceptual differences between preferences of individuals in a role of consumer or citizen.     

成品油税费改革对农村公路管理养护体制的影响

分析了成品油税费改革对农村公路管理养护体制带来的影响,提出了具体的解决办法。     

Impacts of an emission based private car taxation policy - First year ex-post analysis

This paper assesses the impacts of a targeted policy designed to influence car purchasing trends towards lower CO₂ emitting vehicles. Vehicle registration tax and annual motor tax rates in Ireland changed in July 2008 from being based on engine size to emissions performance of cars. This paper provides a one year ex-post analysis of the first year of the tax change, tracking the change in purchasing trends arising from the measure related to specific CO₂ emissions, engine size and fuel, and the implications for car prices, CO₂ emissions abatement, and revenue gathered. While engine efficiency improvements had been offset by purchasing trends towards larger and generally less efficient cars in the past, with the average MJ/km remaining constant from 2000 to 2007, this analysis shows that in the first year of the new taxation system the average specific emissions of new cars fell by 13% to 145 g/km. This was brought about, not by a reduction in engine size, but rather through a significant shift to diesel cars. Despite an unexpected reduction in car sales due to a recession in 2008, the policy measure has had a larger than anticipated impact on CO₂ emissions, calculated to be 5.9 ktCO₂ in the first year of the measure. The strong price signal did however result in a 33% reduction in tax revenue from VRT, in financial terms amounting to a drop of €166 million compared to a baseline situation.