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Books > Earth & environment > The environment > Pollution & threats to the environment > Global warming
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Fuel Taxes and the Poor - The Distributional Effects of Gasoline Taxation and Their Implications for Climate Policy (Hardcover)
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Fuel Taxes and the Poor - The Distributional Effects of Gasoline Taxation and Their Implications for Climate Policy (Hardcover)
Series: Environment for Development
Expected to ship within 10 - 15 working days
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Fuel Taxes and the Poor challenges the conventional wisdom that
gasoline taxation, an important and much-debated instrument of
climate policy, has a disproportionately detrimental effect on poor
people. Increased fuel taxes carry the potential to mitigate carbon
emissions, reduce congestion, and improve local urban environment.
As such, higher gasoline taxes could prove to be a fundamental part
of any climate action plan. However, they have been resisted by
powerful lobbies that have persuaded people that increased fuel
taxation would be regressive. Reporting on examples of over two
dozen countries, this book sets out to empirically investigate this
claim. The authors conclude that while there may be some slight
regressivity in some high-income countries, as a general rule, fuel
taxation is a progressive policy particularly in low income
countries. Rich countries can correct for regressivity by cutting
back on other taxes that adversely affect poor people, or by
spending more money on services for the poor. Meanwhile, in
low-income countries, poor people spend a very small share of their
money on fuel for transport. Some costs from fuel taxes may be
passed on to poor people through more expensive public
transportation and food transport. Nevertheless, in general the
authors find that gasoline taxes become more progressive as the
income of the country in question decreases. This book provides
strong arguments for the proponents of environmental taxation. It
has immediate policy implications at the intersection of multiple
subject areas, including transportation, environmental regulation,
development studies, and climate change. Published with Environment
for Development initiative.
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