Design of a Taxation System to Promote Electric Vehicles in Singapore

Part 2: Design, Manufacturing and Production Management; International audience; Electric vehicles offer a potential low-carbon alternative to todays gasoline-powered vehicles. In line with global trends, Singapore has expressed interest in promoting electric vehicles on its shores. This paper investigates the effects of taxation, namely tax rebates and carbon taxes, on the penetration of electric vehicles in Singapore. A consumer vehicular preference model was constructed using the logit model, and the effects on the economy determined through an inputoutput analysis. Multi-objective optimization is then used to find the optimal tax rate. Results indicate that a tax rebate minimizes the negative impact on the economy at a low penetration rate of electric vehicles, whereas a carbon tax minimizes the negative impact on GDP at a high penetration rate of above 60%. Document type: Part of book or chapter of boo

Purchase, circulation and fuel taxation

During the last decade, the UK and many other developed nations have reformed existing forms of road transport taxation to address a number of transport policy goals. This has involved modifying the design of purchase, circulation and fuel taxation to promote: • More fuel efficient vehicles • Alternative fuel vehicles • Cleaner fuels (lower emissions and/or low carbon) • Modal shift and traffic volume • Congestion reduction This chapter particularly explores the use of environmental taxation to promote Transport Demand Management (TDM) and identifies key principles of the design of such environmental taxes. It notes the importance of positioning a tax measure in relation to user decisions, its targeting and the threshold levels needed to provide a useful policy impact. Taxation measures considered include: • Initial vehicle purchase • ‘Circulation’ Tax on the ownership of vehicles • Tax on the use of vehicles It is concluded that purchase, circulation and fuel taxation can promote a variety of transport and environmental policy goals. It is important to distinguish between taxation measures to influence vehicle characteristics (technology, the type of fuel used and fuel economy) as opposed to the level vehicle use (TDM). Well designed purchase and circulation taxes can stimulate cleaner car technologies and fuels, but they are not an appropriate TDM measure. Road fuel duties are an effective general TDM measure but cannot be targeted on particular areas, times or for particular urban transport policy purposes. Road user charges can be targeted on such factors, and consequently, led by the established example of Singapore, followed by Norway and London, they are attracting much attention. The road transport taxation landscape is possibly set to change with many countries now seeing road user charges as potentially replacing the entire regime of transport taxation on purchase, ownership and fuel. But, rather than replacing fuel duties, evidence is mounting that to manage transport demand, road user charges need to be in addition to and not replace fuel and vehicle taxation. This may be a politically inconvenient truth, and the real challenge will be managing the transition towards an effective new transport taxation regime

Achieving a sustainable automotive sector in Asia and the Pacific: Challenges and opportunities for the reduction of vehicle CO2 emissions

This working paper analyses the contribution of the Asia-Pacific automotive sector to greenhouse gas (GHG) emissions, and the challenges and opportunities facing the sector in efforts to reduce those emissions, primarily carbon dioxide (CO2). The main purpose of this paper is to identify recommendations for appropriate policies and strategies as well as for regional cooperation, to ensure that future developments in the automotive sector contribute to mitigating and adapting to climate change.climate change, vehicle carbon emission, automotive sector development, economic development

Fiscal policy instruments for reducing congestion and atmospheric emissions in the transport sector : a review

This paper reviews the literature on the fiscal policy instruments commonly used to reduce transport sector externalities. The findings show that congestion charges would reduce vehicle traffic by 9 to 12 percent and significantly improve environmental quality. The vehicle tax literature suggests that every 1 percent increase in vehicle taxes would reduce vehicle miles by 0.22 to 0.45 percent and CO2 emissions by 0.19 percent. The fuel tax is the most common fiscal policy instrument; however its primary objective is to raise government revenues rather than to reduce emissions and traffic congestion. Although subsidizing public transportation is a commonpractice, reducing emissions has not been the primary objective of such subsidies. Nevertheless, it is shown that transport sector emissions would be higher in the absence of both public transportation subsidies and fuel taxation. Subsidies are also the main policy tool for the promotion of clean fuels and vehicles. Although some studies are very critical of biofuel subsidies, the literature is mostly supportive of clean vehicle subsidies.Transport Economics Policy&Planning,Environmental Economics&Policies,Transport and Environment,Taxation&Subsidies,Transport in Urban Areas

Enhancing green tax measures in Hong Kong : a means of addressing the city\u27s environmental problems

Nowadays, pressures on the environment are increasing around the world. In particular, Hong Kong, a compact city with a population of nearly seven million, one which has undergone remarkable economic growth over the past few decades, has developed severe environmental problems. It also has deficiencies in its taxation system: a small tax base, for example. In today’s world, “green” taxes have been accepted and applied by more and more countries, especially those in the OECD. However, Hong Kong still has not adequately used the tax tool as an integral part of the government’s anti-pollution strategy. Accordingly, the major objective of this study is to make proposals for improving the use of green tax measures in Hong Kong. The study first systematically introduces background theories of green tax and discusses its advantages and disadvantages. Then, it elaborates on the primary environmental problems in Hong Kong, followed by describing the green tax measures currently existing in the city. The thesis then summarizes and analyzes green tax measures in selected countries which are at the cutting edge of utilizing the tax tool as an integral part in their environmental policy, especially the Scandinavian nations. The study also conducts interviews with Government officials, green groups and those potentially in opposition to green tax. Finally, by drawing on the experiences of green tax measures in selected countries, proposals are made on improving existing green tax measures, introducing new environmental taxes, using the revenue from these taxes and dealing with implementation issues. The research findings of this project will help modernize as well as to green Hong Kong’s taxation system and thus eventually to improve the environment of Hong Kong

Asian Energy and Environmental Policy: Promoting Growth While Preserving the Environment

Asia has truly experienced spectacular economic growth over the past 15 years. However, this economic progress has come at a high cost. It has led to unprecedented environmental consequences. The ecological footprint shows that, despite the fact that one-fifth of the population in Asia still lives on less than US$ 1 per day (PPP-adjusted), the region is already living beyond its ecological carrying capacity. The region is facing a dilemma. On the one hand, continued economic growth is needed to alleviate the poverty of the two-thirds of the world’s poor living in this region. On the other hand, that economic growth will further place tremendous strains on the natural environment. In order to extricate itself from this difficult position, the region needs to shift the conventional pattern of “develop first and then treat the pollution” to a different trajectory of sustainable development. To that end, this paper examines a variety of policy responses at national, regional and international levels to deal with growing concerns about the environmental challenges in Asia in order to help to put the region on a more sustainable development path. In the context of national responses, special attention is paid to the following issues: coordination between the central and local governments, market-based environmental instruments and industrial policies, tougher emissions standards for mobile and stationary sources and for fuel quality, policies to promote energy efficiency and the use of clean energy and biofuels, the integration of environmental policies with economic and sectoral policies, and engagement of the private sector through e.g., ecolabelling, green government procurement, corporate ratings and disclosure programs, and drawing the support of financial institutions to promote improved corporate environmental performance. It is concluded that having the right policy mix, coupled with strengthened cooperation at national, local and regional levels, will ensure continuing economic growth in the region without compromising its limited ecological carrying capacity and environmental quality.Energy policy; Market-based environmental instruments; Asia

A Strategy For Reducing Emissions Of Greenhouse Gases From Personal Travel In Britain

The presence of 'greenhouse gases' in the atmosphere has a warming effect on the biosphere, making the world habitable for life. Human activities, particularly energy use and deforestation, are increasing the concentration of these gases, and in particular carbon dioxide (CO2). Many climatologists believe that the global temperature is beginning to rise as a result. The intergovernmental Panel on Climate Change (IPCC) has recommended that emissions of CO2 be cut by 60 per cent in order to stabilise the atmospheric concentration of this gas and to minimise the resulting disruption to the world's climate. Transport is currently Britain's fastest growing source of carbon dioxide, the principal anthropogenic greenhouse gas. An assessment is made of the relative contributions to CO2 emissions of different forms of travel, and trends in energy use are surveyed. Emissions of CO2 from 'secondary' sources, such as vehicle production, are also examined. A computer model called SPACE is described, which was developed in order to assess CO2 emissions under different policy scenarios up to the year 2025. A 'business as usual' scenario predicts that emissions will rise substantially, mainly as a result of an ongoing rise in road traffic. This contrasts with the Government's stated aim of stabilising emissions of CO2 at the 1990 level by 2000. A modification of this scenario, in which technological improvements to vehicles are vigorously applied, shows a reduced growth in emissions. A third scenario then examines the effect of a combination of technological and demand management policies, and demonstrates a significant reduction in emissions. Scenario 3 adopts what are seen as fairly modest policy measures, making use of their synergistic effect. The main justification for this 'non-radical' approach is public and political acceptability. It is, however, recognised that most of the policy measures could be applied more vigorously if required If it is assumed that transport is allotted a less stringent target than other energy-consuming sectors, the reduction in emissions projected in Scenario 3 is consistent with the IPCC goal of atmospheric CO2 stabilisation. Data sets compiled as part of the SPACE model can be made available on request

Toward a Sustainable Transport Development in Asia and the Pacific

Despite remarkable growth during the last decade, Asia and the Pacific still faces extensive basic infrastructure needs. Furthermore, to cope up with the reduced export demand from advanced economies arising out of the ongoing financial crisis, the region needs to enhance its connectivity through developing transport infrastructure at the national and regional level to rebalance its growth towards regional demand through enhancing intraregional trade. However, building massive transport infrastructure will have profound implications on environment and climate change at the national, regional and global levels as well as on scarce energy resources. This paper presents the needs and benefits of transport connectivity and financing requirement of Asian economies during 2010-2020; and analyzes the major challenges and prospects in developing sustainable transport connectivity. Finally, the paper provides policy recommendations on what the region can do to meet these challenges.sustainable transport, infrastructure, connectivity, financing infrastructure, environment and climate change, Asia and the Pacific

Essentials for sustainable urban transport in Brazil's large metropolitan areas

Before financing major urban transport projects, decisionmakers should attempt to put in place the basic elements for long-term sustainability of the sector. Specifically, the author contends that each large metropolitan area in Brazil should incorporate into its urban transport strategy, and pursue vigorously, the following four-point agenda: 1) create a regional transport coordination commission in charge of coordinating policies among federal, state, and municipal governments, giving highest priority to major urban transport investments in the metropolitan region and promoting modal integration - all to the end of improving the sector's economic efficiency and long-term sustainability; 2) adopt an integrated land use, urban transport, and air quality strategy that provides a framework in which the community and decisionmakers can evaluate future urban transport investments and policies; 3) enact into law formal financing mechanisms that would ensure that long-run variable costs of urban transport systems are covered by operating and non-operating revenues from the systems and by appropriate user charges; and 4) promote private sector participation in the operation, maintenance, and construction of urban transport systems - through concessions or management contracts - as a way to lessen the financial burden on the government.Roads&Highways,Public Sector Economics&Finance,Banks&Banking Reform,Municipal Financial Management,Environmental Economics&Policies,Urban Transport,Banks&Banking Reform,Roads&Highways,Municipal Financial Management,Environmental Economics&Policies

The Promise and Problems of Pricing Carbon: Theory and Experience

Because of the global commons nature of climate change, international cooperation among nations will likely be necessary for meaningful action at the global level. At the same time, it will inevitably be up to the actions of sovereign nations to put in place policies that bring about meaningful reductions in the emissions of greenhouse gases. Due to the ubiquity and diversity of emissions of greenhouse gases in most economies, as well as the variation in abatement costs among individual sources, conventional environmental policy approaches, such as uniform technology and performance standards, are unlikely to be sufficient to the task. Therefore, attention has increasingly turned to market-based instruments in the form of carbon-pricing mechanisms. We examine the opportunities and challenges associated with the major options for carbon pricing: carbon taxes, cap-and-trade, emission reduction credits, clean energy standards, and fossil fuel subsidy reductions.