Distributional Impacts of Economic Instruments to Limit Greenhouse Gas Emissions from Transport

summary:

The research reported in this paper was conducted under the project The Social Impacts of Environmental Taxes: Removing Regressivity, funded by the Joseph Rowntree Foundation under its Programme on Environment and Social Concerns. The project is investigating the social implications of environmental taxes and charges in relation to four environmental issues—the household use of energy, water, and transport, and the generation of waste.

This is a report of the component on the household use of transport.

The distributional impacts of several possible measures to restrain the likely future increase in emissions from transport were investigated:

  • Increasing fuel duties and abolishing vehicle excise duty (VED)
  • Increasing fuel duties and using the money to subsidise public transport
  • Increasing fuel duties and using the money to increase benefits
  • Graduated vehicle excise duty (VED)
  • Graduated car purchase tax
  • Congestion charging
  • Domestic tradable quotas

Research Discussion Paper 19

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