sectoral economic costs and benefits of ghg mitigation - IPCC

Transport
used cars with up to twenty years of age. Let us assume total licensing fee yields US$ 2.0 billion.
Taxes on gasoline and ethanol fuel are around 30% of their final consumer price (R$ 0.35/l and
R$ 0.21/l, respectively, or US$ 0.19 or 0.12/l) . With total sales of 20 and 13 billion l/yr, this
yields US$ 3.8 billion and 1.6 billion, respectively, or a total annual revenue of 5.4 billion. On
top of these taxes there are fees collected in the mostly intensive traffic roads with the purpose to
cover maintenance costs. Thus, total taxes and fees collected from cars users are around US$ 11-
13 billion.
Freight transportation taxes and fees should be added to the previous amount to estimate totals
for the transportation sector. A proxy for such value, based in diesel fuel sales and an annual
sales of 100,000 new units, yields US$ 1.5 billion 1 . Considering tool fees the value may reach
US$ 2.5 billion. Thus, total taxes and fees for the transportation sector ranges from US$ 13-15
billion or 1.8 to 2.1% of GNP, which should be enough to cover road infrastructure requirements,
since in France such infrastructure investment amounts to 19 billion (see Table 1) or 1.6% of
GNP. The issues is that money collected on road vehicles and fuel taxes and fees have multiple
users and are a substantial share of state and country budgets.
Table 1 Public Sector Expenditure vs. User Fees in the Transport Sector (1991 US$)
Public Sector Expenditure User fees Ratio
Total
$ billion
% of GDP Per vehicle
$
Per unit of
traffic ($/vkm)
Total
(billion $)
Fees/public
expenditure
France 19 1.6 650 0.044 29 1.49
United States 74 1.3 400 0.021 59 0.79
Japan 88 2.5 1500 0.134 51 0.58
Source: Michaelis, 1996
3 Charging Full Infrastructure Cost in Fuel Prices
According to studies (Orfeuil, 1995; Moresugi, 1995; DRI, 1996), charging all budgetary
government cost for keeping transportation infrastructure on fuel tax, will increase fuel prices in
USA and Japan, but reduces it for France. Gasoline price per liter should increase by 3 cent in
USA, 8 cent in Japan and decrease 30 cents in France.
Under such approach GHG emissions are analyzed assuming two different scenarios. The
"muddling through" assumes moderate economic growth and moderate technical progress. The
"market rule" assumes a reduction of trade barriers, rapid economic growth and a medium
technical progress. Figure 1 presents the results for the period 1995-2020.
4 Inclusion of Social Costs - Externalities
Existing studies (ECMT, 1995) have tended to focus on four types of externalities associated
with driving. These are:
• costs imposed on other road users in the form of delay because of traffic congestion;
• costs imposed on other road users (including pedestrians, cyclists and public transport users)
because of accidents or the risk of accidents, to the extent that these are not covered
efficiently by insurance;
1 The average price of a truck is US$ 30,000 with 18% sales tax. Tax on diesel fuel is US$ 0.03/liter
yielding around US$ 1 billion/yr.
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