Product quality and environmental taxation

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Date

2002

Journal Title

Journal ISSN

Volume Title

Publisher

Univ Bath

Access Rights

info:eu-repo/semantics/closedAccess

Abstract

In developed countries, car use is one of the most significant contributors to air pollution. It is also a notable fact that larger, heavier cars consume more fuel and hence contribute more to pollution. This observation has led to policy proposals to structure taxation to encourage the use of smaller, lighter cars. A model of vertical product differentiation shows that there are, however, reasons why the standard policy response may be flawed and that it may even be optimal to subsidise large cars at the expense of small ones.

Description

Keywords

Journal or Series

Journal of Transport Economics and Policy

WoS Q Value

Q3

Scopus Q Value

Volume

36

Issue

Citation