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A possible role for discriminatory fuel duty in reducing the emissions from road transport: some UK evidence

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  • David C. Broadstock
  • Xun Chen

Abstract

It is shown that the relative demands for gasoline and diesel fuels are price-responsive. Given the differing emissions-based externalities from these two fuel types, it is contended that discriminatory fuel duty might be a means to reduce these externalities. Results are derived from an Almost Ideal Demand System with time-varying technological progress, estimated using a bootstrap procedure given the nonnormalities and relative small sample sizes.

Suggested Citation

  • David C. Broadstock & Xun Chen, 2013. "A possible role for discriminatory fuel duty in reducing the emissions from road transport: some UK evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 20(6), pages 540-544, April.
  • Handle: RePEc:taf:apeclt:v:20:y:2013:i:6:p:540-544
    DOI: 10.1080/13504851.2012.714059
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    Cited by:

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    2. Orkhan Nadirov & Jana Vychytilová & Bruce Dehning, 2020. "Carbon Taxes and the Composition of New Passenger Car Sales in Europe," Energies, MDPI, vol. 13(18), pages 1-15, September.

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    More about this item

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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