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| Parry, Ian W.H.; Small, Kenneth A.. |
| This paper develops an analytical framework for assessing the second-best optimal level of gasoline taxation taking into account unpriced pollution, congestion, and accident externalities, and interactions with the broader fiscal system. We provide calculations of the optimal taxes for the US and the UK under a wide variety of parameter scenarios, with the gasoline tax substituting for a distorting tax on labor income. Under our central parameter values, the second-best optimal gasoline tax is $1.01/gal for the US and $1.34/gal for the UK. These values are moderately sensitive to alternative parameter assumptions. The congestion externality is the largest component in both nations, and the higher optimal tax for the UK is due mainly to a higher assumed... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Gasoline tax; Pollution; Congestion; Accidents; Fiscal interactions; Public Economics; H21; H23; R48. |
| Ano: 2004 |
URL: http://purl.umn.edu/10461 |
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| Small, Kenneth A.; Yan, Jia. |
| Some road-pricing demonstrations use an approach call ed "value pricing", in which travelers can choose between a free but congested roadway and a priced roadway. Recent research has uncovered a potentially serious problem for such demonstrations: in certain models, second-best tolls are far lower than those typically charged, and the welfare gains from profit maximization are small or even negative. That research, however, assumes that all travelers are identical, and it therefore neglects the benefits of product differentiation, by which people with different values of time can choose a suitable cost / quality combination. Using a model with two user groups, we find that accounting for heterogeneity in value of time is important in evaluating constrained... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Value pricing; Congestion pricing; Value of time; Road pricing; High occupancy/toll lanes; Public Economics. |
| Ano: 2000 |
URL: http://purl.umn.edu/10550 |
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