Distributional effects of urban transport policies to discourage car use: A literature review

Robin Lindsey; Ioannis Tikoudis; Katherine Hassett

doi:https://doi.org/10.1787/8bf57103-en

OECD Environment Working Papers

This series is designed to make available to a wider readership selected studies on environmental issues prepared for use within the OECD. Authorship is usually collective, but principal authors are named. The papers are generally available only in their original language English or French with a summary in the other if available.

English

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- Environment

ISSN: 19970900 (online)
https://doi.org/10.1787/19970900

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Distributional effects of urban transport policies to discourage car use

A literature review

This report takes stock of scientific findings to date regarding the distributional effects of policies discouraging car use in urban areas. These policies include cordon tolls, distance-based charges, fuel taxes, parking measures and public transport subsidies. The report describes the mechanisms responsible for the distributional effects of these policies and offers insights regarding how such policies can be designed to minimise adverse equity outcomes. It also provides recommendations regarding the design and procedural modifications that standard instruments require in order to be more acceptable to the public and to governments. Finally, it identifies a number of issues that warrant further research in the pursuit of greater equity in the outcomes of urban road transport policies.

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English

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- Environment
- Transport

Keywords: road pricing, environmental externalities, fuel tax, income distribution, inequality

JEL: Q52: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Pollution Control Adoption and Costs; Distributional Effects; Employment Effects; H23: Public Economics / Taxation, Subsidies, and Revenue / Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies; D63: Microeconomics / Welfare Economics / Equity, Justice, Inequality, and Other Normative Criteria and Measurement; Q54: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Climate; Natural Disasters and Their Management; Global Warming; R40: Urban, Rural, Regional, Real Estate, and Transportation Economics / Transportation Economics / Transportation Economics: General; Q56: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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