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PRWP

Reproducibility package for Vehicle and Fuel Taxation for Transport Demand Management: Learnings from the Literature through a Development Lens

2023
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Reference ID
RR_WLD_2023_66-v01
DOI
https://doi.org/10.60572/3wek-tf84
Author(s)
He He, Chaeyoung Kim
Collections
World Bank Policy Research Working Papers
Metadata
JSON
Created on
Jan 10, 2024
Last modified
Feb 26, 2024
  • Project Description
  • Downloads
  • Overview
  • Reproducibility Package
  • Description
  • Scope and coverage
  • Disclaimer
  • Access and rights
  • Contacts
  • Information on metadata
  • Citation
  • Overview

    Abstract

    Correctly pricing private vehicles and their use is paramount to building sustainable, safe, and equitable transportation systems. However, determining the “right” price – the combination of taxes on vehicle purchase, ownership, and use – is a complex problem. Although a rich literature exists on the subject, it is built on evidence from developed countries. This paper synthesizes the lessons learned from the literature, theoretical and empirical, on vehicle and fuel taxation for managing private vehicle demand. In particular, the paper examines the efficiency and distributional impacts of purchase, ownership, and use taxes. The literature is unequivocal that taxing use dominates taxing purchase or ownership on efficiency grounds. Nonetheless, the latter instruments can still have important roles to play, for example, addressing specific market failures, for equity and political acceptability considerations, or for ease of enforcement. The paper also discusses the practical challenges of saliency, gaming, and evasion of taxes; how the effectiveness of taxes as policy instruments also depends on the availability of alternatives to driving; and what the emergence of electric vehicles means for optimal taxation. Importantly, the paper considers how these lessons, mostly derived from high-income countries with mature automobile markets, apply to developing contexts. In addition to the policy discussion, the paper conducts two exercises compiling empirical evidence. It compiles and compares estimates of the externality costs associated with private vehicle use, including congestion, local air pollution, greenhouse gas emissions, injuries, and noise. Similarly, it compiles and compares demand response elasticities to vehicle purchase, ownership, and use taxes. Both serve as useful references for researchers, development practitioners, and policy makers.

    Reproducibility Package

    Scripts
    Readme Get Reproducibility Package
    Link: https://reproducibility.worldbank.org/index.php/catalog/99/download/254/README.pdf
    Reproducibility package for Vehicle and Fuel Taxation for Transport Demand Management: Learnings from the Literature through a Development Lens
    Title
    Reproducibility package for Vehicle and Fuel Taxation for Transport Demand Management: Learnings from the Literature through a Development Lens
    Date
    2023-12
    Description
    This package provides the necessary Excel files to replicate the calculations and results of the study. It includes a detailed README file offering clear instructions for using the Excel files.
    Dependencies
    The package does not have dependencies.
    Instructions
    See README in the reproducibility package.
    Notes
    Computational reproducibility verified by Development Impact (DIME) Analytics team, World Bank.
    Source code repository
    Repository name URI
    Reproducible Research Repository (World Bank) https://reproducibility.worldbank.org

    Reproducibility

    Technology environment

    Paper exhibits were analyzed in a computer with the following specifications:
    – OS: Windows 11 Enterprise
    – Processor: Intel(R) Core(TM) i5-1145G7 CPU @ 2.60GHz
    – Memory available: 15.7 GB

    Reproduction instructions

    See README in the reproducibility package.

    Data

    Datasets
    Weighted Average Elasticity data
    Name
    Weighted Average Elasticity data
    Note
    File name: Weighted average elasticity.xlsx Data was extracted from 40 pieces of literature published between 1992 and 2022. The dataset provides insights into demand response elasticities related to vehicle purchase, ownership, and use taxes.
    Access policy
    Published with the package
    Externality Costs data
    Name
    Externality Costs data
    Note
    File name: Externality costs_reproducibility.xlsx Data was extracted from 17 pieces of literature published between 1995 and 2019. The dataset includes estimates of externality costs associated with private vehicle use, such as congestion, pollution, and noise.
    Access policy
    Published with the package
    Data statement

    This study conducts a comprehensive meta-analysis, synthesizing empirical data and theoretical insights from a broad range of literature. The complete list of papers, including author names, publication years, and corresponding values, is meticulously documented in Excel files and the Appendix of the paper.

    Description

    Output
    Vehicle and Fuel Taxation for Transport Demand Management: Learnings from the Literature through a Development Lens
    Type
    Working Paper
    Title
    Vehicle and Fuel Taxation for Transport Demand Management: Learnings from the Literature through a Development Lens
    Authors
    He He, Chaeyoung Kim
    Description
    Policy Research Working Paper (PRWP) 10647
    URL
    http://documents.worldbank.org/curated/en/099900312152317565/IDU0115208e80423d043810b86e05f35c138b74c
    DOI
    https://doi.org/10.1596/1813-9450-10647
    Authors
    Author Affiliation Email
    He He World Bank hhe2@worldbank.org
    Chaeyoung Kim World Bank ckim9@worldbank.org
    Date of production

    2023-12

    Scope and coverage

    Geographic locations
    Location Code
    World WLD
    Keywords
    taxation externality international development motorization
    Topics
    ID Topic Parent topic ID Vocabulary Vocabulary URI
    O18 Urban, Rural, Regional, and Transportation Analysis • Housing • Infrastructure O1 Journal of Economic Literature (JEL)
    R41 Transportation: Demand, Supply, and Congestion • Travel Time • Safety and Accidents • Transportation Noise R4 Journal of Economic Literature (JEL)
    R48 Government Pricing and Policy R4 Journal of Economic Literature (JEL)

    Disclaimer

    Disclaimer

    The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.

    Access and rights

    License
    Name URI
    Modified BSD3 https://opensource.org/license/bsd-3-clause/

    Contacts

    Contacts
    Name Affiliation Email
    He He World Bank hhe2@worldbank.org
    Reproducibility WBG World Bank reproducibility@worldbank.org

    Information on metadata

    Producers
    Name Abbreviation Affiliation Role
    Reyes Retana MRR World Bank Junior Data Scientist
    Date of Production

    2024-01-10

    Document version

    1

    Citation

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