ABSTRACT
The chapters in part four attempt to cover a lot of ground, from the abstract to the practical aspects of policy design. Part Four started with the damage function, which is complex and varies dramatically depending on vehicle, fuel, location, time of day, and weather. The strong interactions between these variables suggest that an integrated approach may be highly appropriate in order to save costs. However, the complexity makes the design of an all-encompassing “first-best” system (such as A in Table 23-1) appear impossible. Although developments in information systems may improve the situation, such information systems are so far used mainly for traffic management (K), as in Singapore. A Policy Matrix for Some Environmental Aspects of Transportation https://www.niso.org/standards/z39-96/ns/oasis-exchange/table">
Policy
Fuel
Vehicle
Traffic
Integrated
Regulation
D
H
J
C
Bans
G
N
O
Price (tax)
B
P
K
A
Information
F
Q
L
Deposit–refund or two-tiered instruments
I
Tradable emissions permits
E
Public provision
M
Note
A = environmentally differentiated road pricing (“first-best” system); B = fuel taxes (possibly differentiated); C = urban planning; D = fuel quality regulations; E = marketable permits (e.g., for fossil carbon); F = green labeling of fuels; G= bans on certain fuels or fuel components; H = regulations concerning vehicle emissions, for new vehicles or for inspection and maintenance; I = two-tiered systems that would, for instance, entice cleaner vehicles to “selfreveal” and opt for a certain option in a menu of policies; J = zoning; K = tariffs for public transport; L = green labeling of transportation services; M = physical structures, such as railways; N = retirement, removal, or repair of the most-polluting vehicles; O = restricting traffic in certain zones or at certain times of day or night; P = taxes (or subsidies) on vehicles; and Q = green labeling of vehicles.
