Working Papers, Swedish National Road & Transport Research Institute (VTI)
No 2008:4:
Steering the European transport greenhouse gas emissions under uncertainty
Svante Mandell ()
Abstract: This paper addresses how to regulate greenhouse gas
emissions from the transport sector when abatement costs are uncertain. In
an EU context, it is shown that a combination of a cap-and-trade system and
emission taxes is preferable as it minimizes the expected efficiency loss.
The optimal design will depend on the relative cost structure within and
outside the transport sector. It is argued that the optimal regime for the
transport sector has similarities, but is not identical to, a pure
emissions tax.
Keywords: Transport; policy; climate change; tradable permits; (follow links to similar papers)
JEL-Codes: Q54; Q58; (follow links to similar papers)
22 pages, May 6, 2008
Forthcoming in Journal of Transport Economics and Policy
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Mandell, Svante, 'Steering the European transport greenhouse gas emissions under uncertainty', Journal of Transport Economics and Policy.
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