The effect of fuel price increases on road transport CO2 emissions

摘要: In his March 1993 Budget, the Chancellor announced a commitment to increase real value of road fuel duty in subsequent Budgets as part strategy return UK CO2 emissions 1990 levels by year 2000. This paper examines effect higher prices on transport using an econometric model consumption. The explains changes consumption terms and incomes. It is structured so that level given time period (t) always approaches long run equilibrium by: D(sub t) = alpha+beta P(sub t)+gamma Y(sub t). (D(sub total consumption; consumption-weighted price fuel; final expenditure.) Results obtained indicate if minimum commitments Budget were adhered up 2000, about 1.5 m tonnes carbon would be saved, which represents one-seventh overall saving required meet Rio commitment. (A)