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The impact of a gasoline tax on auto exhaust emissions

Author

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  • J. Daniel Khazzoom

    (Professor of Quantitative Studies, School of Business, San Jose State University)

Abstract

The EPA implements its policy of exhaust emission control by setting standards specified in terms of grams of pollutants per mile traveled. As a result, the tax must first restrain the vehicle miles traveled (VMT) if it is to have an impact on emission at all. EPA's choice of miles traveled as the medium through which its policy of pollution control must run is unfortunate, because travel is an activity that people resist giving up. This is reflected in a low long-run price elasticity of travel demand. Consequently, it takes substantial increases in the gasoline tax to make an impact on long-run travel demand. Simulation results show that under an alternative policy option, where EPA's standards are specified in terms of grams of pollutant per gallon of fuel burned, the same long-run reduction in exhaust emissions achievable today can be achieved (at an even higher level of confidence) with less than one-tenth of the increase in gasoline price required under the existing policy regime.

Suggested Citation

  • J. Daniel Khazzoom, 1991. "The impact of a gasoline tax on auto exhaust emissions," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 10(3), pages 434-454.
    • Handle: RePEc:wly:jpamgt:v:10:y:1991:i:3:p:434-454
    DOI: 10.2307/3325325
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    References listed on IDEAS

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    1. Blair, Roger D & Kaserman, David L & Tepel, Richard C, 1984. "The Impact of Improved Mileage on Gasoline Consumption," Economic Inquiry, Western Economic Association International, vol. 22(2), pages 209-217, April.
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    Cited by:

    1. Kayser, Hilke A., 2000. "Gasoline demand and car choice: estimating gasoline demand using household information," Energy Economics, Elsevier, vol. 22(3), pages 331-348, June.
    2. Yasser A. Al-Rawi & Mohammed Harith Imlus & Yusri Yusup & Sofri Bin Yahya, 2021. "Factors affecting vehicle exhaust emissions, driver motivations as a mediator," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(2), pages 361-407, April.

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