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The Cost and Effectiveness of Policies to Reduce Vehicle Emissions

image of The Cost and Effectiveness of Policies to Reduce Vehicle Emissions

Transport sector policies already contribute to moderating greenhouse gas emissions from road vehicles. They are increasingly designed to contribute to overall societal targets to mitigate climate change. While abatement costs in transport are relatively high, there are plausible arguments in favour of further abatement in this sector. The empirical basis to decide upon combinations of fuel economy standards and fuel taxes, however, remains weak. This Round Table investigates the effectiveness and costs of various mitigation options in road transport, and discusses the distribution of abatement efforts across sectors of the economy.

English Also available in: French

A Full Account of the Costs and Benefits of Reducing Co2 Emissions in Transport

International Transport Forum

Among economists and policymakers more generally, a fuel efficiency standard for cars and the fuel tax have been the subject of extensive debate. The major benefits from stricter fuel efficiency standards and higher fuel taxes are the reduction of greenhouse gas emissions and the reduced oil dependence. The major costs are the increased production cost, the reduced comfort and the negative impact on mileage-related externalities (congestion, accidents) due to the rebound effect.

English Also available in: French

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