Market Based Instruments
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Market Based Instruments

National Experiences in Environmental Sustainability

  • Critical Issues in Environmental Taxation series

Edited by Larry Kreiser, David Duff, Janet E. Milne and Hope Ashiabor

This detailed book explores how market based environmental strategies are used in various countries around the world. It investigates how successful sustainability strategies used by one country can be transferred and used successfully in other countries, with a minimum of new research and experimentation. Leading environmental taxation scholars discuss this question and analyse a set of key case studies.
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Chapter 10: Incentives for the use of natural gas powered vehicles in the United States, New Zealand and Australia

Bill Butcher, Hans Sprohge, Rahmat Tavallali and Larry Kreiser

Extract

Natural gas fuel for cars and trucks burns cleaner than gasoline or diesel fuel and existing technology is available to produce natural gas powered vehicles (NGPV). Although natural gas fuel is not the ultimate answer for reducing greenhouse gas (GHG) emissions, it can be a successful transition fuel until alternative energy fuel powered vehicles are available for mass production at reasonable prices to consumers. In the 1980s, New Zealand experimented successfully with incentives for the use of natural gas fuel in vehicles. Also, the United States and Australia have provided incentives for the use of natural gas fuel. In this chapter, the authors discuss the merits of these incentives to support the use of NGPV and the effect these incentives have on reducing GHG emissions.

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