Midlands State University Library

A possible role for discriminatory fuel duty in reducing the emissions from road transport: some UK evidence

Broadstock David C

A possible role for discriminatory fuel duty in reducing the emissions from road transport: some UK evidence created by David C. Broadstock and Xun Chen - Applied economics letters Volume 20, number 5 .

It is shown that the relative demands for gasoline and diesel fuels are price-responsive. Given the differing emissions-based externalities from these two fuel types, it is contended that discriminatory fuel duty might be a means to reduce these externalities. Results are derived from an Almost Ideal Demand System with time-varying technological progress, estimated using a bootstrap procedure given the nonnormalities and relative small sample sizes.

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technology biases--AIDS model--time varying parameter

HB1.A666 APP