This study calculates efficient taxes on gasoline and road use designed to combat driving related externalities when motorists avoid taxes due to an excessive economic driving-style. The efficient tax on gasoline is reduced below the Pigouvian rate due to such avoidance. The current US tax rate...

A tax on fuel combined with tax-exemptions or subsidies for purchase of fuel-efficient vehicles is implemented in many countries to reduce greenhouse gas emissions and other negative externalities from road traffic. This study, however, shows that a tax on fuel should be combined with heavier...

This study calculates efficient taxes on gasoline and road use designed to combat driving related externalities when motorists avoid taxes due to an excessive economic driving-style. The efficient tax on gasoline is reduced below the Pigouvian rate due to such avoidance. The current US tax rate...

We investigate how fuel taxation reduces climate and pollution externalities by evaluating the world’s largest environmental tax reform. Using spatially detailed emissions data from more than 1,000 European regions in a synthetic difference-in-differences framework, we evaluate the impact of...

In this paper, we explore automobile fuel efficiency policies in the presence of two externalities i) a global environmental problem; and ii) international innovation spillovers. Using a simple model with two regions, we show that both a fuel tax and a tax on vehicles based on their fuel economy...

This paper develops and implements an analytical framework for estimating optimal taxes on the fuel use and mileage of heavy-duty trucks, accounting for external costs from congestion, accidents, pavement damage, noise, energy security, and local and global pollution. The analysis allows for...

This paper discusses the main external costs related to road transport and the design of taxes to manage them. It provides an overview of evolving tax practice in the European Union and the United States and identifies opportunities for better alignment of transport taxes with external costs....

A tax on fuel combined with tax exemptions or subsidies for fuel-efficient vehicles is implemented in many countries to fulfill the Paris agreement and to curb mileage-related externalities from road traffic. The present study shows that a tax on fuel should be combined with heavier taxation of...

This study calculates efficient taxes on fuel and road use designed to combat driving related externalities. The study shows that the efficient road user charge on fuel is below the marginal mileage-related damage to prevent tax avoidance due to an excessive economic driving-style. The current...

We analyze the effects of distortionary company car taxation through increased household car ownership for the Netherlands. We use several identification strategies and demonstrate that for about 20 percent of households company car possession increases car ownership. The annual welfare loss of...