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Taxes on cars and Gasoline to Control of Air Pollution: Suggested Models for Bangladesh

Author

Listed:
  • Jamal Nazrul Islam1,
  • Haradhan Kumar Mohajan
  • Joly Paul

    (Premier University, Chittagong, Bangladesh)

Abstract

The main aim of this paper is to investigate some policies that would influence people to drive fewer miles and to buy smaller cars, better pollution control equipment, and cleaner fuel. An attempt has been made to quote the vehicle tax rates of Bangladesh. Introduction: Despite technological advances, the emissions of cars’ still can not be measured reliably enough to impose a Pigovian tax. Literature review: Literature review reveals that the gas tax depends on fuel type, engine size and pollution control equipment. A vehicle tax depends on mileage or a combination of uniform tax rates on gasoline and engine size with a subsidy to pollution control equipment. Methods: this study, suggested two models, which first considers homogenous consumers and then considers for heterogeneous consumers that differ by income and two taste parameters, one for miles and other for vehicle size. Conclusion: Yet Bangladesh has not impose emission taxes on vehicles properly; as a result the air pollutions in large cities increasing dangerously. Dhaka, the capital of Bangladesh is one of the dangerously polluted cities of the world. Suggestions: The government of Bangladesh should take immediate steps to impose emission taxes on vehicles according to guidelines of this paper to apply the taxes on vehicles

Suggested Citation

  • Jamal Nazrul Islam1, & Haradhan Kumar Mohajan & Joly Paul, 2011. "Taxes on cars and Gasoline to Control of Air Pollution: Suggested Models for Bangladesh," Indus Journal of Management & Social Science (IJMSS), Department of Business Administration, vol. 5(2), pages 60-73, June.
    • Handle: RePEc:iih:journl:v:5:y:2011:i:2:p:60-73
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    File URL: http://indus.edu.pk/RePEc/iih/journl/6-1-Pahlaj-Combodia-TAXONCARS-ok.pdf
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    References listed on IDEAS

    as
    1. Fullerton, Don & West, Sarah E., 2002. "Can Taxes on Cars and on Gasoline Mimic an Unavailable Tax on Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 43(1), pages 135-157, January.
    2. Michael Hoel, 1998. "Emission Taxes versus Other Environmental Policies," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(1), pages 79-104, March.
    3. Fullerton Don & West Sarah E, 2010. "Tax and Subsidy Combinations for the Control of Car Pollution," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-33, February.
    4. Maureen Sevigny, 1998. "Taxing Automobile Emissions for Pollution Control," Books, Edward Elgar Publishing, number 1447.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Mohajan, Devajit & Mohajan, Haradhan, 2023. "Economic Aspects of Profit Maximization if Cost of Principal Raw Material Increases," MPRA Paper 117453, University Library of Munich, Germany, revised 22 Mar 2023.
    2. Haradhan Kumar Mohajan, 2011. "Optimal Environmental Taxes Due to Health Effect," KASBIT Business Journals (KBJ), Khadim Ali Shah Bukhari Institute of Technology (KASBIT), vol. 4, pages 1-19, December.
    3. Mohajan, Devajit & Mohajan, Haradhan, 2023. "Mathematical Model for Nonlinear Budget Constraint: Economic Activities on Increased Budget," MPRA Paper 117299, University Library of Munich, Germany, revised 17 Mar 2023.
    4. Mohajan, Devajit & Mohajan, Haradhan, 2023. "Various Problems Arise in Industrial Economics If Wage Rate Increases: A Study for Nonlinear Budget Constraint," MPRA Paper 117553, University Library of Munich, Germany, revised 04 Apr 2023.
    5. Mohajan, Devajit & Mohajan, Haradhan, 2023. "A Study on Nonlinear Budget Constraint of a Local Industrial Firm of Bangladesh: A Profit Maximization Investigation," MPRA Paper 117324, University Library of Munich, Germany, revised 27 Mar 2023.
    6. Mohajan, Devajit & Mohajan, Haradhan, 2023. "Sensitivity Analysis of Inputs of an Organization: A Profit Maximization Exploration," MPRA Paper 117121, University Library of Munich, Germany, revised 12 Mar 2023.
    7. Mohajan, Devajit & Mohajan, Haradhan, 2023. "A Study on Body Fat Percentage for Physical Fitness and Prevention of Obesity: A Two Compartment Model," MPRA Paper 117158, University Library of Munich, Germany, revised Feb 2023.
    8. Mohajan, Devajit & Mohajan, Haradhan, 2023. "Bulimia Nervosa: A Psychiatric Problem of Disorder," MPRA Paper 117258, University Library of Munich, Germany, revised 17 Mar 2023.

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    More about this item

    Keywords

    Vehicle Emission; Pigovian Tax; Social Welfare;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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