Using an encompassing framework to evaluate policies that reduce vehicle emissions

Abstract

An encompassing regulatory framework is used to evaluate environmental policies that reduce vehicle emissions. Policy goals include emission reduction, equitable impacts, the minimization of administrative and compliance costs and, in the case of taxes or fees, the efficient use of revenue. Because resources are scarce, it is unlikely that the regulator will achieve each goal. By contrasting emission fees, gasoline taxes, and command–and–control regulation, this paper analyzes regulatory tradeoffs and finds that incentive policy has the greatest potential of reducing vehicle emissions and achieving other policy goals.