Decarbonisation and the Pricing of Road Transport : Summary and Conclusions

Policies to mitigate climate change require a fundamental change to taxation in the transport sector. The shift to electric vehicles and continuing improvements in the fuel efficiency of internal combustion engine vehicles will extinguish revenues from fuel taxes. This report assesses the options for reforming vehicle and road-use taxes. It identifies potential packages of taxes and charges that could generate revenue more efficiently and maintain and enhance incentives for the transition to a sustainable transport system.