01043501

Component

The personal road transport sector is one of the largest and fastest growing sources of CO2 emissions. This paper investigates a tradable permit policy for mitigating carbon emissions from personal road transport and discusses various issues of permit allocation. As tradable permits will effectively raise the price of fuel, the policy has important distributional implications. The distribution of burden depends on permit allocation strategies and on the consumer response to an increase in price. The behavioral response varies among different segments of the population depending on their travel needs, which in turn are contingent upon their income, location of residence and other factors. A model previously estimated by Wadud et. al. (2007) with group-wise aggregated US consumer expenditure survey data for 20 years provides behavioral responses for different income groups. The resulting welfare distribution is evaluated in this paper. Different permit allocation schemes are also considered in the analysis.

01042056

07-2461

English

34p

2007

Transportation Research Board 86th Annual Meeting

CD-ROM

Figures (6) ; References; Tables (4)

Air quality management; Behavior; Carbon; Carbon dioxide; Carbon monoxide; Exhaust gases; Permits; Pollutants; Private passenger vehicles; Private transportation; Travel behavior

Personal transportation; Personal travel

Energy; Environment; Highways; I15: Environment

Transportation Research Board Annual Meeting 2007 Paper #07-2461

TRIS, TRB

Feb 8 2007 7:09PM