An analytical framework toward the use of emission taxes: The Study case of Cotonou (Rep of Benin)

Abstract

As in numerous big cities in developing countries, environmental problems in Cotonou are becoming more and more severe. These problems are the result, among other factors, of the strong air pollution by the motorbike transport sector. This study, while considering health expenditures due to air pollution, uses a general equilibrium model and an optimal model of taxation to derive the optimal level of the taxation that should be applied to the motorbike taxi. On the basis of simulations achieved from the derivative tax, the study shows that an instrument of control based on the polluter pay principle will help to reduce the emission of carbon monoxyde (CO).Pollution; motorbike Taxi; Polluter Pay Principle; General Equilibrium Model; Optimal Tax