Is it environmentally desirable to encourage public transport through taxes? Evidence for Spanish households
Romero Jordán, Desiderio (Universidad Rey Juan Carlos)
Sanz Sanz, José Félix (Universidad Complutense de Madrid)
Burguillo, Mercedes (Universidad de Alcalá)

Date:	2014
Abstract:	There are studies that suggests that the use of environmental taxes to promote the consumption of "clean goods" could have unwanted effects in that it leads to the consumption of "dirty goods". The results will depend on the multiple effects of cross-price elasticities. This paper illustrates the above hypothesis as applied to earth transport consumption in Spanish households. Using microdata for Spanish households, we firstly estimate an AIDS model for 16 groups of goods and services. And secondly simulate two alternative revenue-neutral tax reforms in which the relative price of public transport, in terms of private transport, is reduced between 1 and 2%. The results confirm Sandmo's hypothesis. With both reforms, fuel consumption (as measure of private transport use) increases and public transport consumption decreases. The consequence in each case is a net increase in CO2 emissions per household. So, fiscal reforms of this kind do not seem to be effective to improve the environmental performance of passengers earth transport sector in Spain.
Grants:	Ministerio de Economía y Competitividad ECO2012-32299 Ministerio de Educación y Ciencia SEJ2006-04444 Ministerio de Economía y Competitividad ECO2012-37572
Note:	This research received financial support from URJC-CM-2007-CSH-1738, Eco 2012-32299 del Plan Nacional de I+D+i and CCG08-URJC/HUM-3562. Jose Felix Sanz-Sanz appreciates the funding from the Spanish Ministry of Science and Innovation through [grant number SEJ2006-04444] and from Universidad Complutense through Research Group [grant number 940392].
Note:	Altres ajuts: URJC-CM-2007-CSH-1738
Note:	Altres ajuts: CCG08-URJC/HUM-3562
Note:	Altres ajuts: UCM/940392
Rights:	Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, la comunicació pública de l'obra i la creació d'obres derivades, fins i tot amb finalitats comercials, sempre i quan es reconegui l'autoria de l'obra original.
Language:	Anglès
Document:	Article ; recerca ; Versió publicada
Subject:	Transport ; Environmental taxes ; Household ; AIDS model
Published in:	Cogent economics & finance, Vol. 2 Núm. 1 (2014) , p. 1-9, ISSN 2332-2039

DOI: 10.1080/23322039.2014.946999

9 p, 660.1 KB

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