Publication:
Vehicle and Fuel Taxation for Transport Demand Management: Learnings from the Literature through a Development Lens

Simple item page
dc.contributor.authorHe, He
dc.contributor.authorKim, Chaeyoung
dc.date.accessioned2023-12-20T22:40:09Z
dc.date.available2023-12-20T22:40:09Z
dc.date.issued2023-12-20
dc.description.abstractCorrectly pricing private vehicles and their use is paramount to building sustainable, safe, and equitable transportation systems. However, determining the “right” price – the combination of taxes on vehicle purchase, ownership, and use – is a complex problem. Although a rich literature exists on the subject, it is built on evidence from developed countries. This paper synthesizes the lessons learned from the literature, theoretical and empirical, on vehicle and fuel taxation for managing private vehicle demand. In particular, the paper examines the efficiency and distributional impacts of purchase, ownership, and use taxes. The literature is unequivocal that taxing use dominates taxing purchase or ownership on efficiency grounds. Nonetheless, the latter instruments can still have important roles to play, for example, addressing specific market failures, for equity and political acceptability considerations, or for ease of enforcement. The paper also discusses the practical challenges of saliency, gaming, and evasion of taxes; how the effectiveness of taxes as policy instruments also depends on the availability of alternatives to driving; and what the emergence of electric vehicles means for optimal taxation. Importantly, the paper considers how these lessons, mostly derived from high-income countries with mature automobile markets, apply to developing contexts. In addition to the policy discussion, the paper conducts two exercises compiling empirical evidence. It compiles and compares estimates of the externality costs associated with private vehicle use, including congestion, local air pollution, greenhouse gas emissions, injuries, and noise. Similarly, it compiles and compares demand response elasticities to vehicle purchase, ownership, and use taxes. Both serve as useful references for researchers, development practitioners, and policy makers.en
dc.identifierhttp://documents.worldbank.org/curated/en/099900312152317565/IDU0115208e80423d043810b86e05f35c138b74c
dc.identifier.doi10.1596/1813-9450-10647
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/40783
dc.languageEnglish
dc.language.isoen
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Papers; 10647
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectVEHICLE TAXATION
dc.subjectEXTERNALITY
dc.subjectINTERNATIONAL DEVELOPMENT
dc.subjectMOTORIZATION
dc.subjectCOST OF AUTOMOBILE OWNERSHIP
dc.subjectFUEL TAXATION
dc.subjectTAX COLLECTION
dc.titleVehicle and Fuel Taxation for Transport Demand Managementen
dc.title.subtitleLearnings from the Literature through a Development Lensen
dc.typeWorking Paper
dspace.entity.typePublication
okr.associatedcontenthttps://reproducibility.worldbank.org/index.php/catalog/99 Link to data and reproducibility package
okr.crossref.titleVehicle and Fuel Taxation for Transport Demand Management: Learnings from the Literature through a Development Lens
okr.date.disclosure2023-12-15
okr.date.lastmodified2023-12-15T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099900312152317565/IDU0115208e80423d043810b86e05f35c138b74c
okr.guid099900312152317565
okr.identifier.docmidIDU-115208e8-423d-4381-b86e-5f35c138b74c
okr.identifier.doi10.1596/1813-9450-10647
okr.identifier.doihttp://dx.doi.org/10.1596/1813-9450-10647
okr.identifier.externaldocumentum34216042
okr.identifier.internaldocumentum34216042
okr.identifier.reportWPS10647
okr.import.id2655
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099900312152317565/pdf/IDU0115208e80423d043810b86e05f35c138b74c.pdfen
okr.region.geographicalWorld
okr.sectorOther Public Administration
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.topicEnergy::Energy Demand
okr.topicInfrastructure Economics and Finance::Infrastructure Finance
okr.topicUrban Development::Transport in Urban Areas
okr.unitChief Economist Infrastructure (INFCE)
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
IDU0115208e80423d043810b86e05f35c138b74c.pdf
Size:
699.77 KB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
IDU0115208e80423d043810b86e05f35c138b74c.txt
Size:
218.69 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers