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Steering the European Transport Greenhouse Gas Emissions under Uncertainty

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  • Svante Mandell

Abstract

This paper addresses how to regulate greenhouse gas emissions from the transport sector when abatement costs are uncertain. In an EU context, it is shown that a combination of a cap-and-trade system and emission taxes is preferable as it minimises the expected efficiency loss. The optimal design will depend on the relative cost structure within and outside the transport sector. It is argued that the optimal regime for the transport sector has similarities, but is not identical to, a pure emissions tax. © 2010 LSE and the University of Bath

Suggested Citation

  • Svante Mandell, 2010. "Steering the European Transport Greenhouse Gas Emissions under Uncertainty," Journal of Transport Economics and Policy, University of Bath, vol. 44(1), pages 1-16, January.
    • Handle: RePEc:tpe:jtecpo:v:44:y:2010:i:1:p:1-16
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    Cited by:

    1. Mandell, Svante, 2011. "Carbon emission values in cost benefit analyses," Transport Policy, Elsevier, vol. 18(6), pages 888-892, November.

    More about this item

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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