Quantitative analysis of optimum corrective fuel tax for road vehicles in Bangladesh: achieving the greenhouse gas reduction goal

This study estimates optimum corrective fuel taxes for Bangladesh and correlates them with climate change policy. First, we use the European road transport emission model (COPERT IV) to precisely estimate the externalities. Second, using the same model, we also estimate the reduction in greenhouse gas emissions caused by the fuel tax. Finally, we develop a correlation between the fuel tax rate and emissions reduction. Our benchmark calculation of the optimum corrective tax is US$0.94 per gallon for gasoline and US$1.46 per gallon for diesel (in 2016 prices). We find that congestion and accident externalities are the two main fuel tax components for Bangladesh. We also find that the net social welfare gain per year is US$302.11 million and the net revenue gain per year is 3.59% of GDP. The corrective diesel tax reduces fuel consumption by 18.10% and increases fuel efficiency by 12.53%. In the benchmark case, corrective fuel taxes reduce GHG emissions by 5.77%. With the combination of the existing gasoline tax and a diesel tax of US$1.20 per gallon, the country’s greenhouse gas reduction goal can be achieved. Policymakers can use fuel taxes to support climate change policy.

The Effect of Jet Fuel Tax Changes on Air Transport, Employment, and the Environment in the US

This paper presents an analysis of the effects of jet fuel taxes on air traffic, employment and emissions using a difference-in-difference design. These findings are relevant, as US airports identify how to respond to revenue shortfalls and support local employment in the recovery after Covid-19. Jet fuel tax cuts are considered pro-growth by airlines and stakeholders, however, limited research documents the impacts on airline operations, employment, and emissions, which is an increasing issue given growing societal concerns about aviation sustainability. This study provides an analysis of the effects of changes in jet fuel taxes on air travel, employment, and the environment, using a difference-in-differences design based on data from major US airlines at several US hubs. Results suggest that a jet fuel tax cut increases air traffic by 0.2% on average but fades within a year. The direct effect on air transportation employment is insignificant, as is the effect on total employment. The estimated effect on pollution is an increase of over 1% in CO2, CH4, and N2O emissions. These findings illustrate the precarious balance between air transport growth, local employment, and environmental concerns, and may aid policymakers as they consider potential changes to jet fuel taxes.

ANALISIS PERBANDINGAN KONTRIBUSI DAN EFEKTIVITAS PAJAK BAHAN BAKAR KENDARAAN BERMOTOR DI PROVINSI GORONTALO DAN PROVINSI SULAWESI UTARA

The contribution and the effectiveness of motorcycle fuel taxas is one of the tools that can measure how far the contribution of motorcycle fuel taxes towards original local government revenue and also how far the achievements level of tax collaction by local government in regards of motorcycle fuel taxes because of tax incomes is very crucial to build a district. This study aims to (1) Determine how big the contribution motorcycle fuel taxes toword Original government revenue in Gorontalo Province and North Sulawesi Province (2) To Determine how big the effectiveness motorcycle fuel taxes in Gorontalo Province and North Sulawesi Province (3) How the comparison of contribution and the effectiveness of motorcycle fuel taxes in Gorontalo Province and North Sulawesi Province. This study is using qualitative descriptive method. The result of this study is showing that the motorcycle fuel taxes in Gorontalo Province is stil lack of giving contribution because of the result shows that the average of percentage is 19,29%, and on the other side, North Sulawesi Province also shows a lack of giving contribution which is 19,75% in percentage, and effectiveness motorcycle fuel taxes in Gorontalo Province and North Sulawesi Province is included as very effective criteria by showing a result of criteria level is more than 100%.