Among economists and policy makers more general, the fuel efficiency standard for cars and the fuel tax have been the subject of extensive debate. The major benefits of stricter fuel efficiency standards and higher fuel taxes are the reduction of Greenhouse gas emissions and the reduced oil...

This paper considers various policy measures to reduce traffic externalities in cities, including externality-reducing investments, tolls, emission standards, low emission zones, and bypass capacity to guide traffic around the city center. Using a simple model that distinguishes local and...