Economic instruments and traffic restraint

Potter, Stephen and Rye, Tom (2003). Economic instruments and traffic restraint. In: Hine, J and Preston, J eds. Integrated futures and transport choices: UK transport policy beyond the 1998 White Paper and Transport Acts. Transport and Society. Aldershot, UK: Ashgate, pp. 287–304.



In recent years there have been increasingly strong linkages beteen national fiscal systems and environmental/transport objectives. This chapter explores the purposes and principles of taxation and the implications of this for the use of fiscal policies to manage transport demand and to promote low carbon vehicles. The practical outworkings of this in the UK are documented and comparisons are made with tax systems elsewhere in Europe and the USA.

It is argued that the use of fiscal policies in the UK has been limited and advocates and examines the implications of the adoption of a wider range of fiscal policies as part of a wider package of economic instruments and regulation to achieve transport demand management in an effective manner.

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