International Fuel Tax Assessment: An Application to Chile

 
Author/Editor: Parry, Ian W.H. ; Strand, Jon
 
Publication Date: July 01, 2011
 
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Summary: Gasoline and diesel fuel are heavily taxed in many developed and some emerging and developing countries. Outside of the United States and Europe, however, there has been little attempt to quantify the external costs of vehicle use, so policymakers lack guidance on whether prevailing tax rates are economically efficient. This paper develops a general approach for estimating motor vehicle externalities, and hence corrective taxes on gasoline and diesel, based on pooling local data with extrapolations from U.S.evidence. The analysis is illustrated for the case of Chile, though it could be applied to other countries.
 
Series: Working Paper No. 11/168
Subject(s): Cross country analysis | Demand | Economic models | Excise taxes | Oil | Oil consumption | Taxation | Taxes | Transport | Chile

Author's Keyword(s): gasoline tax | diesel tax | externalities | optimal tax | welfare gains | Chile.
 
English
Publication Date: July 01, 2011
Format: Paper
Stock No: WPIEA2011168 Pages: 36
Price:
US$18.00 (Academic Rate:
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