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Steering the European transport greenhouse gas emissions under uncertainty

Author

Listed:
  • Mandell, Svante

    (Swedish National Road & Transport Research Institute (VTI))

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 minimizes 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.

Suggested Citation

  • Mandell, Svante, 2008. "Steering the European transport greenhouse gas emissions under uncertainty," Working Papers 2008:4, Swedish National Road & Transport Research Institute (VTI).
    • Handle: RePEc:hhs:vtiwps:2008_004
    Note: Forthcoming in Journal of Transport Economics and Policy
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    File URL: http://www.transportportal.se/SWoPEc/Steering_EU_transport_GHG-emissions.pdf
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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

    Keywords

    Transport; policy; climate change; tradable permits;
    All these keywords.

    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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