AbstractThis paper analyzes the use of market-based emission regulation instruments to address the carbon dioxide emissions of transportation. Simulations with a static multi-region computable general equilibrium model show that including transportation into the European emission trading system is superior to a closed emission trading system for transportation or a tax-based approach. Furthermore, we show that exempting transportation from emission regulation is the most favorable approach in terms of welfare. This counterintuitive result is due to a large tax-interaction effect caused by high pre-existing fuel taxes in the transport sector.
Regulating CO2 emissions of transportation in Europe: A CGE-analysis using market-based instruments
Transportation Research Part D: Transport and Environment ; 15 , 4 ; 235-239
2010-01-01
5 pages
Article (Journal)
Electronic Resource
English
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