We estimate efficient prices for passenger transportation in Greater Cairo to address externalities from local pollution, greenhouse gases, traffic congestion, and traffic accidents. An estimated $2.20 per gallon gasoline tax (2006 US$) would be economically efficient, compared with the current subsidy of $1.20 per gallon. Per-mile tolls could target congestion and accident externalities more efficiently than fuel taxes, however. Most efficient is combining a gasoline tax of $0.80 per gallon with per-mile tolls of $0.12 for autos and $0.19 for microbuses. Current public bus and rail fare subsidies are close to efficient levels in the absence of such policies.
Demand-Side Instruments to Reduce Road Transportation Externalities in the Greater Cairo Metropolitan Area
2015
Aufsatz (Zeitschrift)
Englisch
externalities , congestion , fuel tax , emissions , Egypt , mileage toll
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