Paper Title:

Differential Fuel Taxes: Lessons Learned From The European Experience

Presenting Author: Virginia D Mcconnell (Resources for the Future)
Coauthor 1: Winston Harrington
Coauthor 2:
Coauthor 3:
Both Europe and the U.S. are in the process of moving toward dramatically cleaner diesel fuel. U.S. regulations to achieve clean diesel relies on uniform regulations for an 80% conversion to low-sulfur fuel by 2006 in all regions, while countries in the European Union are relying on differential fuel taxes based on the sulfur content of the fuel. We first examine various efficiency and implementation aspects of differential fuel taxes including pricing strategies, conditions for revenue neutrality, the importance of point of collection of the tax, and the relative magnitudes of production and distribution costs for low sulfur fuel. We then look at the European experience with differential fuel taxes over the past ten years, including the experience in Sweden, Finland, the U.K. and most recently in Germany. Each country faced different economic, political institutional factors, and implemented the taxes in different ways, resulting in different outcomes. We attempt to draw lessons for possible uses for differential fuel taxes in the U.S.
Link to paper: Not available
Session / Day / Time 12C / Wednesday / 4:30 - 6:00 pm
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