Automobile Externalities and Policies

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Date

Oct. 30, 2007

Authors

Ian Parry, Margaret A. Walls, and Winston Harrington

Publication

Journal Article

Reading time

1 minute

This paper reviews theoretical and empirical literature on the measurement of the major automobile externalities, namely local pollution, global pollution, oil dependence, traffic congestion and traffic accidents. It then dicusses the rationale for traditional policies to address these externalities, including fuel taxes, fuel economy standards, emissions standards and related policies. Finally, it discusses emerging, more finely-tuned policies, such as congestion pricing and pay-as-you-drive insurance, that have become feasible with advances in electronic metering technology.

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Automobile Externalities and Policies

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Authors

Ian Parry

Margaret A. Walls

Senior Fellow; Director, Climate Risks and Resilience Program

Margaret Walls is a senior fellow at RFF. Her current research focuses on issues related to resilience and adaptation to extreme events, ecosystem services, and conservation, parks and public lands.

Winston Harrington

Senior Fellow Emeritus

Winston Harrington

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