This innovative book examines the role an automobile emissions tax could play in reducing emissions in the United States. Beginning with a theoretical discussion of a first-best tax, a second-best tax on passenger vehicles is developed. This study contains detailed analyses of: The design of tax. Behavioural reponses that lead to emissions reductions, including reductions in the household's vehicle miles of travel and the scrapping of low-value, high emitting vehicles. The effect of the tax on the reduction of emissions. The effects of the tax on households in different income quintiles. A comparison of the emissions reducing potential of a gasoline tax compared to an emissions tax. This study uses a simulation model to analyse the sensitivity of travel demand and the resulting emissions, to different tax rates and demand elasticities. The author concludes that an emissions tax has the potential to significantly reduce emissions from household vehicles, even when travel demand is relatively price inelastic.
Taxing Automobile Emissions for Pollution Control will prove invaluable to policy makers and academics in the field of environmental management and environmental economics and policy.