International Fuel Tax Assessment: An Application to Chile

July 1, 2011

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Format: Chicago

Ian W.H. Parry, and Jon Strand. International Fuel Tax Assessment: An Application to Chile, (USA: International Monetary Fund, 2011) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Gasoline and diesel fuel are heavily taxed in many developed and some emerging and developing countries. Outside of the United States and Europe, however, there has been little attempt to quantify the external costs of vehicle use, so policymakers lack guidance on whether prevailing tax rates are economically efficient. This paper develops a general approach for estimating motor vehicle externalities, and hence corrective taxes on gasoline and diesel, based on pooling local data with extrapolations from U.S.evidence. The analysis is illustrated for the case of Chile, though it could be applied to other countries.

Subject: Commodities, Consumption, Expenditure, Fuel prices, Fuel tax, Gasoline, Prices, Public expenditure review, Revenue administration, Taxes

Keywords: Chile, Diesel tax, Externalities, Fuel economy elasticity, Fuel economy increase, Fuel prices, Fuel tax, Gasoline, Gasoline elasticity, Gasoline price elasticity, Gasoline tax, Global, Motor vehicle, Optimal tax, Public expenditure review, Truck damage estimate, Truck externality, Vehicle fuel economy improvement, Welfare gains, WP

Publication Details

Pages:

28
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2011/168
Stock No:

WPIEA2011168
ISBN:

9781462315338
ISSN:

1018-5941

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