Clean Air Initiative: Better Air Quality Workshop - User Costs Of A Passenger Vehicle. Evidence From A Sample Of Large Cities (PO.Hirota)

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BAQ 2003 > Presentations > Poster sessions

User Costs of a Passenger Vehicle. Evidence From a Sample of Large Cities

Keiko Hirota and KIyoyuki Minato, General Research and Development Division, Japan Automobile Research Institute, Japan

	User Costs Of A Passenger Vehicle. Evidence From A Sample Of Large Cities [.doc, 144.3Kb]

Abstract

In this paper, we study the effectiveness of tax incentives and the variation in vehicle user cost on the environmental impact of private motor vehicle use in OECD countries and in some non-OECD countries in Asia. The user cost of cars is broken down into the acquisition, ownership and running cost. Each component is split into a tax segment and a resource cost segment. We developed our model by means of data from 68 large cities, among which 49 from OECD countries and 19 from non-OECD countries in Asia. The implications for sustainable development of the structural differences between these taxes are identified. Our results indicate that an incentive-based system that rewards higher environmental performance, such as differential tax rates by vehicle characteristics, would be effective.