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  3. Journal of Economic Literature
  4. June 2007
  5. Automobile Externalities and Policies

Journal of Economic Literature

ISSN 0022-0515 (Print) | ISSN 2328-8175 (Online)

Automobile Externalities and Policies

  • Ian W. H. Parry
  • Margaret Walls
  • Winston Harrington
Journal of Economic Literature
vol. 45, no. 2, June 2007
(pp. 373–399)
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Abstract

This paper discusses the nature, and magnitude, of externalities associated with automobile use, including local and global pollution, oil dependence, traffic congestion and traffic accidents. It then discusses current federal policies affecting these externalities, including fuel taxes, fuel economy and emissions standards, and alternative fuel policies, summarizing, insofar as possible, the welfare effects of those policies. Finally, we discuss emerging pricing policies, including congestion tolls, and insurance reform, and summarize the appropriate combination of policies to address automobile externalities.

Citation

Parry, Ian, W. H. , Margaret Walls, and Winston Harrington. 2007. "Automobile Externalities and Policies." Journal of Economic Literature, 45 (2): 373–399. DOI: 10.1257/jel.45.2.373

JEL Classification

  • H23 Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
  • L62 Automobiles; Other Transportation Equipment
  • Q48 Energy: Government Policy
  • Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
  • R41 Transportation: Demand, Supply, and Congestion; Safety and Accidents; Transportation Noise
  • R48 Transportation Economics: Government Pricing and Policy