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A system of tradable permits applied to fuel consumption by motorists

Author

Listed:
  • Charles Raux

    (LET - Laboratoire d'économie des transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique)

  • Grégoire Marlot

    (LET - Laboratoire d'économie des transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique)

Abstract

Decentralized transferable permit systems in the transport sector can be of interest with regard to reducing greenhouse gas emissions, in spite of anticipated transaction costs. This paper describes a concrete application of a domestic market for motor vehicle fuel consumption permits. The marginal costs of consumption reduction vary sufficiently according to motorists' residential locations to consider permit exchanges. Economic evaluation of this system reveals that there are transfers of surplus between the various groups of motorists according to their residential locations. The central government may lose significant revenues when compared with a conventional fuel tax. Lastly, the issue of transaction costs, the benefits and disadvantages in terms of social acceptability and equity are discussed.

Suggested Citation

  • Charles Raux & Grégoire Marlot, 2004. "A system of tradable permits applied to fuel consumption by motorists," Post-Print halshs-00093244, HAL.
    • Handle: RePEc:hal:journl:halshs-00093244
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00093244
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    File URL: https://shs.hal.science/halshs-00093244/document
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    Cited by:

    1. Bertoldi, Paolo & Rezessy, Silvia & Anable, Jillian & Jochem, Patrick & Oikonomou, Vlasis, 2011. "Energy Saving Obligations and White Certificates: Ideas and Considerations for the Transport Sector," MPRA Paper 91624, University Library of Munich, Germany.

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