Gasoline Tax Policy, Carbon emissions and the Global Environment

Gasoline Tax Policy, Carbon emissions and the Global Environment

Gasoline demand elasticities in the OECD are analysed and used to forecast gasoline consumption and carbon emissions under various price and tax policies. If the whole OECD had taxes as high as Italy, emissions could be reduced by more than 30 per cent in the year 2000, instead of increasing by almost 50 per cent if taxes remained unchanged.

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