Fuel taxes : An important instrument for climate policy

摘要: Abstract This article shows that fuel taxes serve a very important role for the environment and we risk backlash of increased emissions if they are abolished. Fuel have restrained growth in demand associated carbon emissions. Although is large growing, our analysis it would been much higher absence domestic taxes. People often assert inelastic but there strong research evidence showing opposite. The price elasticity fact quite high only long-run: short run may be which has implications policy makers. Had Europe not followed taxation had low US taxes, then twice as large. Hypothetical transport whole OECD area calculated various tax scenarios results show single most powerful climate instrument implemented to date—yet this usually given due attention debate.