Working Papers,
Swedish National Road & Transport Research Institute (VTI)

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

JEL-codes: Q54; Q58

22 pages, May 6, 2008

Note: Forthcoming in Journal of Transport Economics and Policy

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Steering_EU_transport_GHG-emissions.pdf  

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Fortchoming as

Svante Mandell, 'Steering the European transport greenhouse gas emissions under uncertainty', Journal of Transport Economics and Policy

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