Urban pollution, particularly from exhaust fumes, is a growing problem in Costa Rica, as elsewhere. Policy makers have tried to solve the problem through traditional regulatory instruments. But at the same time, other policy initiatives, such as reducing taxes, have contributed to greater car ownership and use, and hence, pollution levels. This study looks at whether the government's practice of differentiating car taxes on the basis of vehicle characteristics can be used to improve air quality in Costa Rica. The results indicate that a tax that increases the relative price of used cars will have significant environmental impacts, while other means of differentation are much weaker.The share of vehicles by the age of the car, the vehicles type and engine size are all analysed in separate models because they ... necessary to use the certification data in order to weight emission rates by sales of vehicles in Costa CREED Working Paper Series No 34 12 ... Price New Cars 191, 464.10 145, 679.45 261, 966.22 PPT Total Weighted Price (new + used) 140, 309.79 75, 278.48 250, 626.75 QUanbsp;...
|Title||:||The Environmental Effects of Tax Differentiation by Vehicle Characteristics|
|Author||:||International Institute for Environment and Development|
|Publisher||:||IIED - 2000|