Discussion Papers no. 905

Efficient taxation of fuel and road use

This study calculates efficient taxes on fuel and road use designed to combat driving related externalities

The study shows that the efficient road user charge on fuel is below the marginal mileage-related damage to prevent tax avoidance due to an excessive economic driving-style. The current US tax rate on gasoline is way below the efficient tax rate while the current UK rate is slightly above the efficient rate in this case. The efficient tax on fuels exceeds the marginal damage of CO2-emissions to promote an economic driving-style when the tax is combined with a GPS-based tax on road use. The efficient GPS-based tax rate on road use is reduced below the marginal damage of mileage-related externalities in this case.

About the publication

Title

Efficient taxation of fuel and road use

Author

Geir H. M. Bjertnæs

Series and number

Discussion Papers no. 905

Publisher

Statistisk sentralbyrå

Topic

Discussion Papers

ISSN

1892-753X

About Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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