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A graduated transport fuel excise for metropolitan areas

Author

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  • Thomas Cool

Abstract

A graduated excise allows mores patial control of congestion and pollution. The cost of a detour to a scheaper gas station defines a gradient, and the integral gives an excise mountain with its top at the center of the metropolitan area. Consisntency implies that the mountain with the maximal gradient is a cone. There are differential effects of fuel efficiency, tank size, speed and (virtual) wage costs. An increase in fuel efficiency e.g. reduces the size of the maximal exxcise cone. Legislation and control would be required to prevent riding bombs and graduated smuggling.

Suggested Citation

  • Thomas Cool, 1996. "A graduated transport fuel excise for metropolitan areas," Public Economics 9605001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwppe:9605001
    Note: 6 pages Word, formulas, three diagrams
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    More about this item

    JEL classification:

    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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