An Analysis of Various Policy Instruments to Reduce Congestion, Fuel Consumption and Co2 Emissions in Beijing
36 Pages Posted: 20 Apr 2016
Date Written: October 1, 2009
Abstract
Using a nested multinomial logit model of car ownership and personal travel in Beijing circa 2005, this paper compares the effectiveness of different policy instruments to reduce traffic congestion and CO2 emissions. The study shows that a congestion toll is more efficient than a fuel tax in reducing traffic congestion, whereas a fuel tax is more effective as a policy instrument for reducing gasoline consumption and emissions. An improvement in car efficiency would also reduce congestion, fuel consumption, and CO2 emissions significantly; however, this policy benefits only richer households that own a car. Low-income households do better under the fuel tax policy than under the efficiency improvement and congestion toll policies. The congestion toll and fuel tax require the travel cost per mile to more than triple. The responsiveness of aggregate fuel and CO2 are, approximately, a 1 percent drop for each 10 percent rise in the money cost of a car trip.
Keywords: Transport Economics Policy & Planning, Airports and Air Services, Roads & Highways, Transport and Environment, Transport in Urban Areas, Urban Transport
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Measuring the Contribution of Public Infrastructure Capital in Sweden
By Ernst R. Berndt and Bengt Hansson
-
Endogenous Growth, Public Capital, and the Convergence of Regional Manufacturing Industries
-
Spatial Productivity Spillovers from Public Infrastructure: Evidence from State Highways
-
Public Infrastructure Investments, Productivity and Welfare in Fixed Geographic Areas
-
Consumer Benefits of Infrastructure Services
By Carmit Schwartz, W. Erwin Diewert, ...
-
TFP, Costs, and Public Infrastructure: An Equivocal Relationship
-
Motorization and the Provision of Roads in Countries and Cities
By Gregory K. Ingram and Zhi Liu