Fuel Taxation in Europe

  • Jessica Coria


Based on the European experience, this chapter highlights the very important role of motor fuel taxes for carbon emission mitigation. Fuel demand and CO2 emissions would have been much higher in the absence of fuel taxes of the level currently implemented in Europe. Moreover, given the close link between fuel consumption and CO2 emissions, fuel taxes are likely to be more effective reducing CO2 emissions than alternative policies such as fuel-efficiency standards. Nevertheless, in order to reduce the broad range of external costs of road transportation, additional instruments are necessary. The fuel demand elasticities and the role of fuel taxes reducing CO2 emissions are discussed, and policy recommendations are provided.


Price Elasticity Fuel Efficiency Fuel Price Gasoline Price Vehicle Ownership 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.



The author thanks Thomas Sterner and Theodoros Zachariadis for helpful comments.


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Copyright information

© Springer Science+Business Media B.V. 2012

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of GothenburgGothenburgSweden

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