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Automobile Externalities and PoliciesIan W. H. ParryResources for the Future Margaret WallsResources for the Future - Quality of the Environment Division Winston HarringtonResources for the Future January 1, 2007 RFF Discussion Paper No. 06-26 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 we summarize what appears to be the appropriate combination of policies to address automobile externalities.
Number of Pages in PDF File: 40 Keywords: pollution, congestion, accidents, fuel tax, fuel-economy standard, congestion pricing JEL Classification: Q54, R48, H23 working papers seriesDate posted: September 4, 2006 ; Last revised: November 10, 2008Suggested CitationContact Information
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