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Taxes and Transport Externalities

PFM, Vol. 3 No. 1, (2003)

The paper reviews the role of taxation in controlling transport
externalities. It argues that the design of transport taxes should take
into account pre-existing tax distortions in the economy and looks at the
implications of restrictions on the transport instruments at the disposal
of the policy maker. The relevance of equity considerations for
transport pricing is also explored.

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