A green reform is not always green

Mogens Fosgerau, Thomas Christian Jensen

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    This paper analyses a tax reform, explicitly conceived by policy makers to be climate-friendly, that partly replaces a high vehicle registration tax by road user charging and allows for differentiation of the remaining registration tax by fuel efficiency. A microeconomic framework is proposed to analyse such a reform. For the case of Denmark, the analysis shows that the reform is likely to yield a significant and robust welfare gain. However, it seems not unlikely that CO2 emissions from passenger cars may increase as a result of the reform.

    Original languageEnglish
    JournalTransportation Research. Part C: Emerging Technologies
    Volume30
    Pages (from-to)210-220
    ISSN0968-090X
    DOIs
    Publication statusPublished - May 2013

    Keywords

    • Congestion
    • Road user charging
    • Tax reform
    • CO2
    • Welfare economics
    • Registration tax

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