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Reforming the tax system to promote environmental objectives: An application to Mauritius

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  • Parry, Ian W.H.

Abstract

Fiscal instruments are potentially among the most effective, and cost-effective, options for addressing externalities related to poor air quality, urban road congestion, and greenhouse gases. This paper takes a case study, focused on Mauritius (a pioneer in the use of green taxes) to illustrate how existing taxes, especially on fuels and vehicles, could be reformed to better address these externalities. We discuss, in particular, an explicit carbon tax; a variety of options for reforming vehicle taxes to meet environmental, equity, and revenue objectives; and a progressive transition to usage-based vehicle taxes to address congestion.

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  • Parry, Ian W.H., 2012. "Reforming the tax system to promote environmental objectives: An application to Mauritius," Ecological Economics, Elsevier, vol. 77(C), pages 103-112.
    • Handle: RePEc:eee:ecolec:v:77:y:2012:i:c:p:103-112
    DOI: 10.1016/j.ecolecon.2012.02.014
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    6. Mahlia, T.M.I. & Tohno, S. & Tezuka, T., 2013. "International experience on incentive program in support of fuel economy standards and labelling for motor vehicle: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 18-33.
    7. Goshu Desalegn & Anita Tangl, 2022. "Banning Vs Taxing, Reviewing the Potential Opportunities and Challenges of Plastic Products," Sustainability, MDPI, vol. 14(12), pages 1-16, June.
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    9. World Bank, 2017. "Shaping Sustainable Consumption and Production Agenda in Turkey," World Bank Publications - Reports 28580, The World Bank Group.
    10. Yahya F. Anouti & Carol A. Dahl, 2014. "Rationalizing Transport Fuels Pricing Policies and Effects on Global Fuel Consumption, Emissions, Government Revenues and Welfare," Working Papers 2014-01, Colorado School of Mines, Division of Economics and Business.
    11. Parry, Ian W.H., 2012. "Reforming the tax system to promote environmental objectives: An application to Mauritius," Ecological Economics, Elsevier, vol. 77(C), pages 103-112.
    12. Jaime de Melo, 2023. "Environmentally-friendly trade policies to shape Mauritius’ future," Working Papers hal-04001711, HAL.
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    More about this item

    Keywords

    Africa; Mauritius; Green taxes; Global warming; Congestion; Vehicle taxes;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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