Abstract

This paper outlines the issues involved in the problem of global warming. The road transport sector's contributions to this problem are then detailed and various policy options to reduce greenhouse gas emissions from private cars are discussed. The paper then describes a model which forecasts greenhouse gas emissions from cars. The effects of various policy options are then modelled and the results compared. Policies considered include: raising fuel prices in terms of the UK government's commitment to increase road fuel duties; subsidising public transport in terms of reduced public transport fares; and a tax differentiated by engine size.

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