Publication
Title
Car user taxes, quality characteristics, and fuel efficiency
Author
Abstract
We study the impact of car user taxes on vehicle quality and demand for kilometres. First, holding car prices fixed, we find that a higher fuel tax leads households to choose cars of better fuel efficiency, provided that the demand for car use is inelastic. Surprisingly, a higher kilometre tax reduces the demand for fuel efficiency. Next, we study how car prices react to the tax changes. Fuel taxes make owning very fuel-efficient cars more expensive, while reducing prices of cars of low fuel efficiency. Both fuel taxes and kilometre charges imply lower prices for large and powerful cars.
Language
English
Source (journal)
Journal of transport economics and policy. - London, 1967, currens
Publication
London : 2014
ISSN
0022-5258 [print]
1754-5951 [online]
Volume/pages
48:3(2014), p. 345-366
ISI
000340698000001
UAntwerpen
Faculty/Department
Research group
Project info
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 09.10.2014
Last edited 17.12.2017
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