The paper analyses the strategic environmental policy choices of governments for the car market. We consider two countries that each have a small number of car producers who sell cars at home and abroad, there are cross border pollution externalities and cross border R&D externalities. Each...

In transportation planning there can be long lead times to adapt capacity. This paper addresses two questions. First, in a one mode world (say rail or road), what is the optimal capacity choice when faced with uncertain demand, long lead times and congestion. Using a simple analytical model it...

In this paper we incorporate monitoring and enforcement aspects in the choice of environmental policy instruments in a general equilibrium framework. Goulder et al. (J.Pub.Econ., 1999) look into the choice of policy instruments in the presence of distortionary taxes. We extend this model by no...

The paper studies a regional environmental tax reform in a federal state. A region unilaterally improves the environmental quality by increasing its energy taxes. The regional government recycles the excess tax revenues by lowering either pre-existing distorting labor or capital taxes. This...

In this paper, we explore automobile fuel efficiency policies in the presence of two externalities i) a global environmental problem and ii) international innovation spillovers. Using a simple model with two regions, we show that both a fuel tax and a tax on vehicles based on their fuel economy...

Transport activity is inextricably linked with environmental damage. Economists traditionally urge policy makers to adopt pricing solutions, in particular taxes, to reduce environmental damage rather than quantity restrictions or standards. This chapter examines environmental pricing, defined...

In the Auto-Oil Programme, the European Commission looks for emission limits for cars such that the urban air quality targets are reached at minimum cost. This optimisation problem was solved by Degraeve et al. (1998). In this paper we deal with two methodological problems in this cost...

In this paper we analyse the gap between present transport prices and efficient transport prices. Efficient transport prices are those prices that maximise economic welfare, including external costs (congestion, air pollution, accidents). The methodology is applied to six urban and interregional...

This paper discusses the stranded cost concept. Stranded costs have to do with the transition from a regulated to a more competitive market. The aim of the paper is threefold. First, the paper discusses the place of the stranded cost concept in the variety of costs concepts encountered in the...

The paper analyses the impact of economies of density on the characteristics of an urban transport system under optimal pricing conditions. Optimal pricing rules are derived for a transport system where bus and car modes are available for peak and offpeak trips. Both modes contribute to...