International Fuel Tax Assessment : An Application to Chile

Author/Editor: Ian W.H. Parry ; Jon Strand
Publication Date: July 01, 2011
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
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): Chile | Economic models | Energy | Excise taxes | Oil | Oil consumption | Taxation | Transport

Author's Keyword(s): gasoline tax | diesel tax | externalities | optimal tax | welfare gains | Chile.
Publication Date: July 01, 2011
ISBN/ISSN: 9781462315338/1018-5941 Format: Paper
Stock No: WPIEA2011168 Pages: 28
US$18.00 (Academic Rate:
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