https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf What are the benefits and drawbacks of using Pigouvian fees / pollution permits in order to reduce market failures associated with vehicle emissions? en-us 2021-03-20 14:52:36 UTC 2021-03-22 11:34:42 UTC hello@padlet.com padraigmeehan1 https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337249406 Incentive to lie about emissions for two reasons:
a) on the price of taxes, which in turn affects the price of cars
b) signal to the market in terms of their actual pollution levels (consumers will go buy from other alternatives)

Potential to change road-worthiness for testing ]]> 2021-03-22 11:16:11 UTC https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337249406 padraigmeehan1 https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337259567 Disincentivising high sales of cars (leads to more pollution overall)]]> 2021-03-22 11:19:52 UTC https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337259567 padraigmeehan1 https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337263096 Information asymmetry is minimised in the production with this system (less incentive to lie)]]> 2021-03-22 11:21:08 UTC https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337263096 padraigmeehan1 https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337268654 Always money set aside to cover damages / use of cars - set aside costs for future / compensation.]]> 2021-03-22 11:23:19 UTC https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337268654 padraigmeehan1 https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337273571 Tax incidence on producers or consumers. EU has principle of polluter pays which may not hold (who actually pollutes: drivers or manufacturers?)]]> 2021-03-22 11:24:56 UTC https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337273571 padraigmeehan1 https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337277304 Can the tax actually be set at the correct level to guide social optimum? Different cars may have different tax rates]]> 2021-03-22 11:26:09 UTC https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337277304 padraigmeehan1 https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337280271 Assuming you know the social optimum, it successfully internalises the externality. Does not however provide govt with tax revenues re. compensation.]]> 2021-03-22 11:27:12 UTC https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337280271 padraigmeehan1 https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337284280 Research has found that a Pigouvian fee is slightly more favourable]]> 2021-03-22 11:28:38 UTC https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337284280 padraigmeehan1 https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337286286 Higher TC due to increased costs of selling or higher actual price of vehicles.]]> 2021-03-22 11:29:22 UTC https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337286286 padraigmeehan1 https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337288196 Producers have to process the tax fee and pass this on (time, admin) ]]> 2021-03-22 11:30:04 UTC https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337288196 padraigmeehan1 https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337290075 Compared to emissions standards, Volkswagen obviously seen to cheat so tax may be more suitable]]> 2021-03-22 11:30:45 UTC https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337290075 padraigmeehan1 https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337296070 Costs in a tax system compensated for

Lobbying costs with cap and trade

Initial costs may be slightly higher

Initial one-off cost of both system]]> 2021-03-22 11:32:46 UTC https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337296070 padraigmeehan1 https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337301661 Less costs]]> 2021-03-22 11:34:40 UTC https://padlet.com/padraigmeehan1/7vm4gsbmpt9dcaaf/wish/1337301661