Environmental Fiscal Challenges for Cities and Transport
Edited by Marta Villar Ezcurra, Janet E. Milne, Hope Ashiabor and Mikael Skou Andersen
Chapter 11: Taxing vehicle use to overcome the problems of conventional transport taxes
Alberto Gago, Xavier Labandeira and Xiral López-Otero
Abstract
Road transport has traditionally been subject to a number of taxes, the purposes being to collect revenue, cover infrastructure costs and correct externalities. However, in recent years several factors have been undermining the operation and effectiveness of such taxes: pervasive local pollution and congestion problems that are only indirectly related to vehicle type and fuel consumption; the trend towards a more energy-efficient fleet, reducing the revenue capabilities of the system; and increased changes in mobility options. In this chapter we suggest a new approach towards transport taxation that is based on both the characteristics of the vehicle and its actual use. Taxing the real use of a vehicle is now technologically feasible and can more effectively tackle the externalities associated with road transport, while maintaining revenue-raising capabilities. Given the difficulties associated with an immediate transition, the chapter also considers several alternatives for moving from the current tax situation.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.