An Analysis of Various Policy Instruments to Reduce Congestion, Fuel Consumption and Co2 Emissions in Beijing

36 Pages Posted: 20 Apr 2016

See all articles by Alex Anas

Alex Anas

SUNY at Buffalo, College of Arts & Sciences, Department of Economics

Govinda R. Timilsina

World Bank - Development Research Group (DECRG)

Siqi Zheng

Massachusetts Institute of Technology (MIT) - Center for Real Estate; Massachusetts Institute of Technology (MIT) - Department of Urban Studies & Planning; Hang Lung Center for Real Estate, Tsinghua University

Date Written: October 1, 2009

Abstract

Using a nested multinomial logit model of car ownership and personal travel in Beijing circa 2005, this paper compares the effectiveness of different policy instruments to reduce traffic congestion and CO2 emissions. The study shows that a congestion toll is more efficient than a fuel tax in reducing traffic congestion, whereas a fuel tax is more effective as a policy instrument for reducing gasoline consumption and emissions. An improvement in car efficiency would also reduce congestion, fuel consumption, and CO2 emissions significantly; however, this policy benefits only richer households that own a car. Low-income households do better under the fuel tax policy than under the efficiency improvement and congestion toll policies. The congestion toll and fuel tax require the travel cost per mile to more than triple. The responsiveness of aggregate fuel and CO2 are, approximately, a 1 percent drop for each 10 percent rise in the money cost of a car trip.

Keywords: Transport Economics Policy & Planning, Airports and Air Services, Roads & Highways, Transport and Environment, Transport in Urban Areas, Urban Transport

Suggested Citation

Anas, Alex and Timilsina, Govinda R. and Zheng, Siqi, An Analysis of Various Policy Instruments to Reduce Congestion, Fuel Consumption and Co2 Emissions in Beijing (October 1, 2009). World Bank Policy Research Working Paper No. 5068. Available at SSRN: https://ssrn.com/abstract=1484553

Alex Anas (Contact Author)

SUNY at Buffalo, College of Arts & Sciences, Department of Economics ( email )

415 Fronczak Hall
Buffalo, NY 14260
United States

Govinda R. Timilsina

World Bank - Development Research Group (DECRG) ( email )

1818 H Street NW
MSN3-311
Washington, DC 20433
United States

Siqi Zheng

Massachusetts Institute of Technology (MIT) - Center for Real Estate ( email )

Building 9-323
Cambridge, MA 02139
United States

HOME PAGE: http://https://siqizheng.mit.edu/

Massachusetts Institute of Technology (MIT) - Department of Urban Studies & Planning ( email )

77 Massachusetts Avenue
Cambridge, MA 02139
United States

Hang Lung Center for Real Estate, Tsinghua University ( email )

HeShanHeng Building
Beijing, 100084
China

HOME PAGE: http://https://siqizheng.mit.edu/

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