Back Matter

Back Matter

Author(s):
Ian Parry, Dirk Heine, Eliza Lis, and Shanjun Li
Published Date:
July 2014
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    Glossary

    Air emissions regulations. Requirements for the use of emissions control technologies or standards for allowable emission rates (e.g., per kWh averaged over a generator’s plants).

    Air quality model. Computational models that link emissions from different sources to ambient pollution concentrations in nearby and more distant regions, accounting for meteorological and other factors that influence pollution formation.

    Area licensing scheme. A scheme charging motorists for driving in a restricted area with high congestion.

    Biofuels. Fuels that contain energy from recent production of carbon in living organisms such as plants and algae.

    Border adjustments. The use of charges on the embodied pollution in imported products to alleviate concerns about the impact of environmental taxes on the international competitiveness of domestic firms.

    Breathing rate (BR). The rate at which a given amount of outdoor air pollution is inhaled by the average person.

    Carbon capture and storage (CCS). Technologies to separate carbon dioxide emissions during fuel combustion at, for example, coal plants, transport it to a storage site, and deposit it in an underground geological formation (e.g., depleted gas fields) to prevent its release into the atmosphere.

    Carbon dioxide (CO2). The predominant greenhouse gas. To convert tons of carbon dioxide into tons of carbon, divide by 3.67. To convert a price per ton of carbon dioxide into a price per ton of carbon, multiply by 3.67.

    Carbon dioxide (CO2) equivalent. The global warming potential of a greenhouse gas over its atmospheric lifespan (or over a long period) expressed as the amount of carbon dioxide that would yield the same amount of warming.

    Carbon Monitoring for Action (CARMA). A database used for obtaining the geographical location of coal and natural gas power plants across different countries.

    Carbon tax. A tax imposed on carbon dioxide emissions released largely through the combustion of carbon-based fossil fuels.

    Common but differentiated responsibilities. A principle of the United Nations Framework Convention on Climate Change calling for developed countries to bear a disproportionately larger burden of mitigation costs (e.g., by funding emissions reduction projects in developing countries), given that they are relatively wealthy and contributed most to historical atmospheric greenhouse gas accumulations.

    Concentration response function. The relationship between ambient pollution concentrations and elevated risks of various fatal diseases for populations exposed to the pollution.

    Corrective tax. A charge levied on a source of environmental harm and that is set at a level to reflect, or correct for, environmental damage.

    Cost-effective environmental policy. A policy that achieves a given level of environmental protection at minimum economic cost. This requires (1) pricing policies to equate incremental mitigation costs across different sources of an environmental harm and (2) that the revenue potential from pricing policies be realized and revenues be used productively (e.g., to lower other taxes that distort economic activity).

    Credit trading. In emissions trading systems, credit trading allows firms with high pollution abatement costs to do less mitigation by purchasing allowances from relatively clean firms with low abatement costs. Similarly, in regulatory systems credit trading allows firms with high compliance costs to fall short of an emissions or other standard by purchasing credits from firms that exceed the standard.

    Distance-based taxes. Taxes that vary directly in proportion to how much a vehicle is driven, for example, on busy roads at peak period.

    Downstream policy. An emissions policy imposed at the point at which carbon dioxide emissions are released from stationary sources, primarily from smokestacks at coal plants and other facilities.

    Economic costs. The costs of the various ways households and firms respond to a policy (e.g., through conserving energy or using cleaner but more costly fuels). Costs also encompass the impact of a new policy on distortions (e.g., to work effort and capital accumulation) created by the broader fiscal system (these costs can be at least partially offset through recycling of environmental tax revenues).

    Efficiency standards. Requirements for the energy efficiency of products, usually electricity-using products such as lighting, household appliances, and space heating and cooling equipment. Similar policies are sometimes applied to vehicles though they are more commonly known as fuel efficiency standards.

    Emissions control technology. Technologies used to capture emissions at the point of fuel combustion, thereby preventing their release into the atmosphere. Available technologies can dramatically cut local air pollution emissions from power plants and vehicles with costs that are usually modest relative to environmental benefits.

    Emissions factor (or coefficient). The amount of a particular emission (carbon, sulfur dioxide, nitrogen oxides, fine particulate matter) released per unit of fuel combustion. For coal and natural gas, emissions factors are expressed in tons per unit of energy; for motor fuels they are expressed in tons per liter of fuel.

    Emissions leakage. A possible increase in emissions in other regions in response to an emissions reduction in one country or region. Leakage could result from the relocation of economic activity, for example, the migration of energy-intensive firms away from countries whose energy prices are increased by climate policy. Alternatively, it could result from price changes, for example, increased demand for fossil fuels in other countries as world fuel prices fall in response to reduced fuel demand in countries taking mitigation actions

    Emissions pricing. Policies that put a price on carbon or local air emissions

    Emissions trading system or scheme (ETS). A market-based policy to reduce emissions. Covered sources are required to hold allowances for each ton of their emissions or, in an upstream program, embodied emissions content in fuels. The total quantity of allowances is fixed and market trading of allowances establishes a market price for emissions. Auctioning the allowances can provide a valuable source of government revenue.

    Energy paradox. The observation that some energy-efficient technologies are not adopted by the market even though they appear to pay for themselves through discounted lifetime energy savings that exceed the upfront investment cost.

    Environmental tax shifting. Introducing or increasing an environmental tax and simultaneously lowering other taxes, thus leaving net government revenue unchanged.

    Externality. A cost imposed by the actions of individuals or firms on other individuals or firms that the former do not take into account (e.g., when deciding how much fuel to burn or how much to drive).

    Feebate. A policy that imposes a fee on firms with emission rates (e.g., carbon dioxide per kWh) above a “pivot point” level and provides a corresponding subsidy for firms with emissions rates below the pivot point. Alternatively, the feebate might be applied to energy consumption rates (e.g., gasoline per kilometer) rather than emissions rates. Feebates are the pricing analog of an emissions or energy standard, but they circumvent the need for credit trading across firms and across periods to contain policy costs.

    Fiscal dividend. The revenue gain from energy tax reform.

    Flue-gas desulfurization units (scrubbers). Technologies used to remove sulfur dioxide from exhaust flue gases of fossil-fuel power plants. The most common technology is wet scrubbing using a slurry of alkaline sorbent (usually limestone, lime, or seawater). Flue-gas desulfurization can remove 90 percent or more of the sulfur dioxide in the flue gases of coal-fired power plants.

    Fuel efficiency (or fuel economy) standards. Policies that regulate the allowable fuel use per unit of distance (or distance per unit of fuel use) for new vehicles, often averaged over a manufacturer’s vehicle fleet.

    Getting (energy) prices right. Reflecting both production costs and environmental damages in energy prices faced by energy users.

    Gigajoule (GJ). A metric term used for measuring energy use. For example, 1 GJ is approximately equivalent to the energy available from 278 kWh of electricity, 26 cubic meters of natural gas, or 26 liters of heating oil. One gigajoule is equal to one billion joules.

    Gigatonne (Gt). 1 billion (109) tonnes.

    Global Burden of Disease (GBD) project. An effort by the World Health Organization to describe the global distribution and causes of a wide array of major diseases, injuries, and health risk factors (including pollution-related illness).

    Global positioning system (GPS). A space-based satellite navigation system that can provide information on where and when vehicles are driven.

    Global warming. The rise in observed globally averaged temperature from pre-industrial levels that is largely attributed to rising atmospheric accumulations of greenhouse gases (as opposed to other factors like changes in solar radiation).

    Greenhouse gas (GHG). A gas in the atmosphere that is transparent to incoming solar radiation but traps and absorbs heat radiated from the earth. Carbon dioxide is the predominant greenhouse gas.

    Health or mortality risk value. Value attached to a premature death or other health effect from pollution exposure or traffic accident used to monetize health risks, needed to assess corrective energy taxes.

    Integrated Assessment Model. A model that combines a simplified representation of the climate system with a model of the global economy to project the impacts of mitigation policy on future atmospheric greenhouse gas concentrations and temperature.

    Interagency Working Group on the Social Cost of Carbon. A group of representatives from U.S. executive branch agencies and offices tasked with developing consistent estimates of the social costs of carbon for use in regulatory analysis.

    Intergovernmental Panel on Climate Change (IPCC). The IPCC assesses the scientific, technical, and socioeconomic information relevant for understanding climate change.

    Intake fraction. The average pollution inhaled per unit of emissions released, usually expressed as grams of fine particulate matter inhaled per ton of primary emissions.

    Kilowatt hour (kWh). A unit of energy equal to 1,000 watt hours or 3.6 million joules.

    LandScan data. Provides population counts by grid cell across different countries.

    Local or ambient air pollution. Outdoor pollution other than carbon emissions caused by discharges from fossil fuel consumption and other sources.

    Megawatt hours (MWh). A unit of energy equal to 1,000,000 watt hours or 3.6 billion joules.

    Metric tonne (or ton). A unit of mass equal to 1,000 kilograms, or 2,205 pounds. In the United States, the short ton, equal to 907 kilograms or 2,000 pounds, is more commonly used.

    Microgram (mg). Unit of mass equal to one millionth of a gram.

    Micrometer (mm). A distance equal to one millionth of a meter.

    Millennium Cities Database for Sustainable Transport. Database providing travel speeds and various transportation indicators for 100 cities across many different countries.

    Nitrogen oxides (NOx). Pollutants generated from the combustion of coal, petroleum products, and natural gas. Nitrogen oxides react in the atmosphere to form fine particulates, which are harmful to human health.

    Offset. A reduction in emissions in other countries or unregulated sectors that is credited to reduce the tax liability or permit requirements for emissions covered by a formal pricing program.

    Ozone. A secondary pollutant formed at ground level from chemical reactions involving nitrogen oxides and volatile organic compounds that can have health effects.

    Particulate matter (PM). Particulate matter is classified into fine particulates (PM2.5, with diameter up to 2.5 micrometers) and coarse particulates (PM10, with diameter up to 10 micrometers). Fine particulates are damaging to human health because they are small enough to penetrate the lungs and bloodstream, thereby raising the risk of heart, lung, and other diseases.

    Parts per million (ppm). Unit for measuring the concentration of greenhouse gas molecules in the atmosphere by volume.

    Passenger car equivalent (PCE). The contribution to congestion from a vehicle-kilometer driven by another vehicle (e.g., a truck) relative to congestion per vehicle-kilometer driven by a car.

    Pavement damage. Wear and tear on the road network caused by vehicles, especially heavy trucks (because damage is a rapidly escalating function of a vehicle’s axle weight).

    Pay-as-you-drive (PAYD) auto insurance. A system of car insurance in which motorists pay premiums in direct proportion to the amount they drive.

    Petajoule (PJ). A metric term used for measuring energy use. A petajoule is equal to one quadrillion joules.

    Primary air pollutant. A pollutant, such as sulfur dioxide or nitrogen oxides, that subsequently transforms through chemical reactions in the atmosphere into a “secondary” pollutant, most importantly, fine particulates, which, in turn, have harmful effects on human health.

    Primary energy consumption. The energy content of fossil and other fuels before any transformation into secondary energy (e.g., electricity).

    Proxy environmental tax. An environmentally related tax that forgoes some environmental effectiveness because it is not directly targeted at the source of environmental harm. For example, unlike a direct tax on emissions, a tax on electricity consumption does not promote use of cleaner power generation fuels.

    Rebound effect. The increase in fuel use (or emissions) resulting from increased use of energy-consuming products following an improvement in energy efficiency, which lowers their operating costs.

    Revealed preference. Studies that use observed market behavior to estimate people’s tradeoffs. For example, estimates of how much people are willing to pay for reduced mortality risk have been inferred from studies that look at the lower wages paid for jobs with lower occupational risks.

    Secondary air pollutant. A pollutant (the most important of which from a health perspective is fine particulates) formed from atmospheric reactions involving primary pollutants such as sulfur dioxide and nitrogen oxides.

    Secondary energy. An energy source, primarily electricity, produced by combusting a primary fuel.

    Social cost. The sum of private cost and external cost.

    Social cost of carbon (SCC). The present discounted value of worldwide damage from the future global climate change associated with an additional ton of carbon dioxide emissions.

    Stated preference. Studies that use web-based or other questionnaires to infer people’s preferences (e.g., their willingness to pay for reducing fatality risk).

    Sulfur dioxide (SO2). A pollutant caused by the combustion of fuel, primarily coal, that reacts in the atmosphere to form fine particulates with potentially harmful effects on human health.

    Targeting the right base. Levying charges directly on the sources of an environmental harm to address all opportunities for reducing that harm.

    TM5-Fast Scenario Screening Tool (FASST). A simplified model linking pollution emissions from different sources and geographical sites to ambient pollution concentrations and health risks in different regions.

    United Nations Framework Convention on Climate Change (UNFCCC). An international environmental treaty produced at the 1992 Earth Summit. The treaty’s objective is to

    stabilize atmospheric greenhouse gas concentrations at a level that would prevent “dangerous interference with the climate system.” The treaty itself sets no mandatory emissions limits for individual countries and contains no enforcement mechanisms. Instead, it provides for updates (called protocols) that would set mandatory emissions limits.

    Upstream policy. An emissions pricing policy imposed on the supply of fossil fuels before their combustion (e.g., at the refinery gate for petroleum products or the minemouth for coal).

    Value of travel time (VOT). The monetary cost that people attach to the time used per unit of travel.

    Volatile organic compounds (VOCs). Primary pollutants that are released during motor fuel combustion and react in the atmosphere to form ozone.

    Index

    Page numbers followed by b, f or t refer to boxed text, figure captions, or tables, respectively.

    A

    • Air pollution

      • from coal, 80–87, 136

      • current shortcomings in energy pricing for effects of, 5

      • damage per unit of fuel, 4, 39b, 87–89

      • energy tax design features, 3, 39b

      • environmental damage from, 20–22

      • estimated effects of fuel tax reform, 7–8, 7f

      • fuel tax design and, 21–22, 127

      • harmful components, 16b, 68

      • indoor, 16–17b

      • intake fraction calculations, 69–70, 69b, 71, 83–85

      • international comparison, 21, 21 f

      • mortality related to, 1, 20–21, 22f 67, 73–76, 75f, 144, 145f

      • from motor fuels, 20, 48, 139

      • from natural gas, 5, 20, 136

      • primary and secondary components, 19–20

      • sources of, 19–20

      • valuation of damages from, 4, 20, 67–68, 80–87, 82f, 84f, 85f, 86f, 87f 90, 92–95t

      • See also Emissions capture; Population exposure to air pollution; specificpollutant

    • Ammonia, 70, 71, 85

    • Australia

      • air pollution damage valuation, 82

      • carbon pricing scheme, 41b

      • corrective coal tax estimates, 132

      • motor fuel taxes, 141

      • population distribution, 14

      • traffic accident costs, 115

      • traffic congestion costs, 108

      • See also International comparison

    B

    • Brazil

      • air pollution damage valuation, 82

      • fuel mix, 13

      • motor fuel taxes, 137–139, 141

      • potential revenue from corrective fuel taxes, 8, 144

      • See also International comparison

    C

    • Canada, 41b. See also International comparison

    • Carbon dioxide

      • atmospheric concentration and persistence, 17

      • carbon charge modeling methodology, 4, 65

      • corrective charges for, 5

      • current carbon pricing programs, 26

      • effects of corrective taxes on emissions of, 7–8, 7f, 144–145, 146f 148, 157–160t

      • emissions patterns and trends, 17, 18f

      • energy tax design features, 3, 46, 47

      • environmental damage per unit of fuel, 89

      • global emissions, 17, 18f

      • global per capita emissions, 13, 15f

      • global temperature change and, 1, 17–18

      • long range impacts, 66

      • natural gas power emissions, 5

      • per kilowatt hour standard, 34–36, 51

      • significance of, as pollutant, 17

      • strategies for reducing, 32, 34, 35f

      • See also Air pollution

    • Carbon monoxide, 16b

    • Carbon pricing programs

      • cost-benefit approach to pricing in, 65–66

      • cost-effectiveness approach to pricing in, 66–67

      • current implementation, 26

      • economic costs, 37b

      • effectiveness of, 34, 35f

      • effects in energy-intensive industries, 59

      • illustrative value, 67

      • price determinations, 65

      • regulatory policies versus, 34–36

    • Chile

      • air pollution damage valuation, 82

      • motor fuel taxes, 141

      • population distribution, 14

      • potential revenue from corrective fuel taxes, 144

      • traffic accident costs, 114

      • See also International comparison

    • China

      • air pollution damage valuation, 82, 86

      • corrective coal tax estimates, 132, 134–136

      • costs of air pollution, 20

      • costs of premature mortality, 1

      • fuel mix, 13

      • motor fuel taxes, 141

      • potential revenue from corrective fuel taxes, 144

      • potential revenue gains of energy tax reform, 8

      • traffic congestion costs, 108

      • See also International comparison

    • Coal power

      • air pollutants from, 20, 136

      • air pollution damage estimates, 80–87, 84f85f 86f 87f

      • consumption data and calculations, 146–147

      • current taxes, 131, 132f 161–164t

      • current undercharges for effects of, 5, 145–146

      • emissions per unit of fuel, 88–89

      • environmental impacts of corrective taxes, 157–160t

      • environmental tax design, 46, 131–136, 132f 133f

      • estimated corrective taxes by country, 149–152t

      • estimated effects of corrective taxes, 4, 7–8, 7f, 142–146

      • estimating population exposure to air pollution from, 68–73

      • fiscal impacts of corrective taxes, 153–156t

      • fuel prices, 131

      • health impacts of corrective taxes, 157–160t

      • international comparison of emission rates, 89, 90f

      • international comparison of fuel mix, 13, 14f

      • potential revenue from corrective taxes, 143f, 144

      • smokestack height, 72

      • unintended consequences of environmental taxes, 45b

    • Compensation payments, 42

    • Concentration-response function, 74–76

    • Consumers

      • acceptance of energy-saving technologies, 56b

      • demand reduction among, 32, 334 34, 126–127, 147–148

      • opposition to energy tax reform, 57–59

    • Corporate taxation, 40, 59

    • Corrective taxes

      • air pollution levels and, 21–22, 39b

      • balanced design, 38

      • broader fiscal outcomes of, 45b

      • clean energy technology development and, 54–56

      • coal, 131–136, 132f, 133f

      • components, 3–4

      • cost effectiveness, 36

      • country estimates, 149–152t

      • current, by country, 161–164t

      • current revenue from, 24–25, 25 f

      • design challenges, 2–3, 8, 165

      • design principles, 42–43, 60

      • effect on carbon dioxide emissions, 7f, 8, 144–145, 146f

      • effect on fuel consumption, 147–148

      • emissions trading system versus, 42–44, 50–51

      • energy prices and, 40, 147

      • environmental outcomes, 157–160t

      • estimating impacts of, methodology for, 142–143

      • findings and recommendations, 3, 5–8

      • fiscal outcomes, 39–42, 153–156t

      • fuel efficiency standards and, 51

      • health outcomes, 7, 7f, 144, 145f, 157–160t

      • heating fuels, 47

      • impact on low-income households, 57–58, 58f

      • interaction with other environmental policies, 50–51

      • in low-income countries, 60

      • motor fuels, 47–48, 137–142, 139f 140f 141f

      • natural gas, 136–137, 137f, 138f

      • novel alternatives, 52–53

      • obstacles to implementation, 56–59

      • offset provisions, 44

      • other tax reductions offset by, 41–42, 41b

      • potential revenue gains from, 7f, 8, 143–144, 145

      • power generation, 46

      • problems of current energy pricing, 1

      • rationale, 1, 2–3, 8, 145–146, 165

      • regulatory policies and, 34–36, 51–52

      • traffic congestion and, 23

      • See also Gasoline tax

    • Cost-benefit balance

      • carbon pricing calculations, 65–66

      • corrective tax calculation, 38

      • importance of, 38

      • policy goals, 2

    • Cost-effective policies, 2, 36–37, 56b, 66–67

    D

    • Data sources and quality, 3, 11, 146–147, 165

    • Demand reduction, 32, 33b, 34, 126–127, 147–148

    • Diesel fuel

      • air pollution from, 20

      • corrective tax rationale, 146

      • current taxes, 26f, 61–164t, 125–26

      • damage per unit of fuel, 89

      • distributional incidence of subsidies, 57, 58f

      • environmental impacts of tax reform, 157–160t

      • estimated corrective taxes by country, 149–152t

      • estimated effects of fuel tax reform, 142–146

      • fiscal impacts of tax reform, 153–156t

      • health impacts of tax reform, 157–160t

      • potential revenue from corrective taxes, 143f, 144

      • tax design, 6–7, 48, 108, 113, 117, 126–128, 141–142, 141f

    • Discounting costs and benefits of mitigation, 66

    • Distance-based taxes for vehicles, 48–50, 49–50b, 53–54b, 101, 146

    E

    • Economic growth

      • environmental taxation and, 40–41

      • goals of energy policy reform, 2

    • Egypt

      • fuel mix, 13

      • motor fuel taxes, 137–139, 141

      • natural gas prices, 136

      • potential revenue from corrective fuel taxes, 8, 144

      • See also International comparison

    • Electricity consumption

      • per capita international comparison, 11, 12f

      • strategies for reducing carbon dioxide emissions, 32

      • taxes, 26, 36

      • See also Coal power

    • Emissions capture and reduction

      • environmental damage per unit of fuel from plants with, 89

      • environmental taxes and, 3, 51, 132–133, 133f

    • Emissions trading system

      • administrative structure, 44

      • advantages of, 34, 44

      • cap, 43

      • cost effectiveness, 36–37

      • design principles, 42–43

      • environmental taxes versus, 42–44, 50–51

      • European Union experience with, 43, 43f

      • offset provisions, 44

    • Employment outcomes of environmental policies, 37b, 40–41

    • Energy efficiency, 32, 34, 36, 44, 48, 50, 51

    • Energy paradox, 56b

    • Energy prices

      • ceilings and floors, 52

      • compensation payments, 42

      • cost-benefit balance of policies, 38

      • current shortcomings of, 1

      • energy taxes and, 40, 147

      • energy use and, 142

      • estimating impacts of corrective energy taxes, 142–143

      • goals for fiscal policy reform, 1, 2

      • implementation of reforms, 8, 56–59

      • opportunities for improving, 27

      • policy design challenges, 2–3, 8, 165

    • Energy security, 17b

    • Energy use

      • data sources and calculations, 146–147

      • energy-intensive industries, 59

      • environmental damage and, 1, 14, 16–17b

      • fiscal policies to correct side effects of, 1, 2

      • global climate change and, 1, 17–18

      • harms in extraction and production, 16b

      • per capita primary consumption, 11, 12f

      • price elasticities, 142, 147–148

      • strategies for reducing carbon dioxide emissions, 32

      • unintended consequences of environmental taxes, 45b

      • See also Coal power; Diesel fuel; Gasoline tax; Natural gas; Subsidies, energy use

    • Environmental damage

      • from air pollution, 20–22

      • components of, 4, 44–46

      • corrective tax outcomes, 157–160t

      • cost-benefit approach to mitigation, 38, 65–66

      • cost-effectiveness approach to mitigation policies, 66–67

      • current fuel taxes and, 25–26

      • data quality, 165

      • discounting, 66

      • energy use and, 1, 14, 16–17b

      • goals of fiscal policy reform to reduce, 2

      • international comparison of fuel mix and, 13

      • from larger vehicles, 142

      • measurement of, 3

      • per unit of fuel, 87–89

      • problems of current energy pricing, 1

      • rationale for fiscal policy reform to address, 31–32

      • See also Air pollution; Corrective taxes; Global climate change

    • Equity issues in global mitigation, 67

    • European Union emissions trading system, 43, 43f

    F

    • Feebates, 52–53

    • Finland, 114. See also International comparison

    • Fiscal policy

      • to address externalities, 14

      • broader fiscal outcomes of environmental taxes, 39–42

      • cost-benefit balance in, 2, 38

      • cost effectiveness of, 2, 36

      • economic costs of environmental policies, 37–38b

      • goals, 2

      • political context, 4, 31

      • principles of environmental protection with, 31–32

      • for reducing carbon dioxide emissions, 32

      • revenue from corrective taxes, 8, 143–144, 145

    G

    • Gasoline, environmental effects of

      • air pollution, 20, 48

      • costs of traffic congestion, 102b

      • damage per unit of fuel, 89

      • scope of, 47

    • Gasoline tax

      • carbon component, 139

      • competition and, 45b

      • current, 25–26, 26f, 139f, 141, 161–164t;

      • design, 47–48, 126–128, 137–141, 139f, 140f

      • distributional incidence of subsidies, 57, 58f

      • efficiency and emissions standards and, 51

      • environmental impacts of corrective, 157–160t

      • estimated corrective taxes by country, 149–152t

      • estimated effects of corrective, 142–146

      • fiscal impacts of reform, 153–156t

      • fuel efficiency considerations, 128

      • health impacts of reform, 157–160t

      • potential revenue from corrective, 143f, 144

      • price distortions, 45b

      • rationale, 5–7, 146

    • Germany

      • air pollution damage valuation, 81–82, 83

      • energy taxes, 41b

      • motor fuel taxes, 137–139, 141

      • motor vehicle taxes, 50b

      • potential revenue from corrective fuel taxes, 144

      • traffic congestion costs, 108

      • See also International comparison

    • Global Burden of Disease, 83

    • Global climate change

      • carbon charge modeling methodology, 4

      • cost-benefit approach to policies to address, 65–66

      • cost-effectiveness approach to policies to address, 66–67

      • energy use and, 1, 17–18

      • estimated effects of corrective energy taxes, 144–145

      • See also Temperature rise, global

    • Greenhouse Gas and Air Pollution

      • Interactions and Synergies, 87, 88b

    • Greenhouse gases

      • global temperature change and, 1, 18

      • sources of, 17

      • See also Carbon dioxide; Nitrogen oxides; Sulfur dioxide

    H

    • Health outcomes

      • air pollution, 20–21

      • calculation of corrective tax effects on, 146–147

      • carbon charge modeling methodology, 4

      • concentration-response function, 74–76

      • corrective tax effects, 144, 157–160t

      • current shortcomings in energy pricing for, 5

      • individual susceptibility, 73

      • occupational risks in fuel production industries, 16b

      • particulate matter emissions, 20–21

      • population exposure to air pollution, modeling, 68–73

      • traffic accident costs, 112–113, 125–126

      • See also Mortality

    • Heart disease, 74

    • Heating fuel

      • natural gas, 72, 137

      • strategies for reducing use of, 32

      • tax design for, 47, 60

    • Heat map of corrective coal tax estimates, 134, 135f

    I

    • Income taxes, 40

    • India

      • air pollution damage valuation, 83

      • fuel mix, 13

      • motor fuel taxes, 141

      • natural gas prices, 136

      • population distribution, 14

      • potential revenue from corrective fuel taxes, 144

      • traffic accident costs, 115

      • traffic congestion costs, 108

      • See also International comparison

    • Indonesia

      • air pollution damage valuation, 83

      • potential revenue from corrective fuel taxes, 8, 144

      • See also International comparison

    • Infant mortality, 74

    • Insurance, auto, 53–54b

    • Intake fractions, 69–70, 694 71, 83–85

    • Integrated assessment modeling, 65–66

    • Intellectual property rights, 55

    • International comparison

      • air pollution, 21, 21f

      • air pollution damage estimates, 80–87, 82f 84f 85f 86f 87f 92–95t

      • air pollution mortality, 21, 22f

      • carbon dioxide emissions, 17, 18f

      • carbon dioxide emissions, per capita, 13, 15f

      • city-level transit delays, 103, 103t

      • coal plant emission rates, 89, 90f

      • corrective coal tax estimates, 131–136, 132f, 133f

      • corrective motor fuel tax estimates, 137–142, 139f 140f, 141f

      • corrective natural gas tax estimates, 136–137, 137f, 138f

      • country-level transit delays, 104t

      • current fuel excise taxes, 161–164t

      • electricity consumption, per capita, 11, 12f

      • environmental damage per unit of fuel, 89

      • environmental effects of corrective tax, 157–160;

      • estimated corrective taxes, 149–152t

      • fiscal impacts of tax reform, 153–156t

      • fuel energy mix, 13, 14f

      • health outcomes of corrective tax, 157–160t

      • mortality risk from air pollution, 74, 75f

      • mortality risk values, 80, 81 f, 81t

      • motor vehicle ownership, 11–13, 13f

      • motor vehicles and road capacity, 23, 23f

      • population density, 13–14, 15f

      • potential revenue from corrective fuel taxes, 143–144, 143f

      • primary energy use, per capita, 11, 12f

      • traffic accident costs, 114–115, 115f, 116f

      • traffic accident fatalities, 114

      • traffic congestion costs, 108–109, 109f, 110f

      • value of travel time, 106–107, 108f

      • See also Organization for Economic and Community Development

    • Israel

      • environmental damage per unit of fuel, 89

      • motor fuel taxes, 141

      • population distribution, 14

      • potential revenue from corrective fuel taxes, 144

      • traffic congestion costs, 108

      • See also International comparison

    J

    • Japan

      • air pollution damage valuation, 81–82, 83, 86

      • environmental damage per unit of fuel, 89

      • motor fuel taxes, 137–139, 141, 142

      • population distribution, 14

      • potential revenue from corrective fuel taxes, 8, 144

      • traffic accident costs, 115

      • traffic congestion costs, 108

      • See also International comparison

    K

    • Kazakhstan

      • air pollution damage valuation, 82

      • fuel mix, 13

      • motor fuel taxes, 141

      • potential revenue from corrective fuel taxes, 144

      • traffic accident costs, 115

      • traffic congestion costs, 108

      • See also International comparison

    • Korea

      • air pollution damage valuation, 81–82, 83

      • motor fuel taxes, 137–139, 141, 142

      • traffic congestion costs, 108

      • See also International comparison

    L

    • Lead exposure, 16b

    • Low-income countries, 60, 67

    • Low-income households, 57–58

    • Lung cancer, 74

    M

    • Methane, 17

    • Mexico

      • air pollution damage valuation, 82

      • fuel mix, 13

      • potential revenue from corrective fuel taxes, 8, 144

      • See also International comparison

    • Millennium Cities Database for Sustainable Transport, 102

    • Mortality

      • from air pollution, 1, 20–21, 22f, 67, 73–76

      • calculation of corrective tax effects on, 148

      • carbon charge modeling methodology, 4

      • corrective tax outcomes, 157–160t

      • economic costs, 1

      • estimated effects of corrective energy taxes, 7–8, 7f, 144, 145, 145f

      • human capital approach to valuing, 77, 77b

      • indoor air pollution, 16–17b

      • infant, 74

      • international comparison of risk valuations, 80, 81 f, 81t

      • from motor vehicle use, 1, 24, 24f

      • risk valuation, 76–87

      • from traffic accidents, 113–114, 125

      • value of life saved, 79–80

    • Motor vehicle use

      • air pollution from, 20

      • associated mortality, 1, 24, 24f

      • carbon charge modeling methodology, 4–5

      • costs of, 1

      • current fuel efficiency, 128

      • current fuel taxes, 5–6, 6f, 25–26, 26f

      • distance-based taxes, 48–50, 49–50b, 53–54b, 101

      • emissions standards, 48, 51, 52

      • estimated effects of fuel tax reform, 7–8, 7f

      • feebates, 52

      • fuel efficiency standards, 34, 48, 51

      • fuel tax design, 3–4, 47–50, 60

      • international comparison of ownership and, 11–13, 13f

      • recommended corrective tax of fuel for, 5–7

      • road damage from, 22, 48, 49, 115–117, 127, 142

      • strategies for reducing carbon dioxide emissions, 32

      • value of travel time, 106–107, 107t, 108f

      • vehicle taxes, 26, 36, 52–53b

      • See also Diesel fuel; Gasoline tax; Traffic accidents; Traffic congestion

    N

    • Natural gas

      • air pollution from, 5, 20, 72, 136

      • carbon charge, 136

      • carbon charge modeling methodology, 4

      • consumption data and calculations, 146–147

      • corrective tax estimates, 136–137, 137f, 138f, 149–152t

      • corrective tax rationale, 146

      • current price, 136

      • current taxes, 136, 161–164t

      • environmental damage per unit of fuel, 89

      • environmental impacts of tax reform, 157–160t

      • estimated effects of corrective taxes, 142–146

      • findings and recommendations for energy pricing, 5

      • fiscal impacts of tax reform, 153–156t

      • health impacts of tax reform, 157–160t

      • home heating with, 137

      • international comparison of fuel mix, 13, 14f

      • population exposure to pollution from, 72

      • potential revenue from corrective taxes, 143f, 144

    • Nigeria

      • air pollution damage valuation, 83

      • fuel mix, 13

      • potential revenue from corrective fuel taxes, 8, 144

      • See also International comparison

    • Nitrogen oxides

      • atmospheric concentration, 17

      • damage estimates, 83, 85f, 92–95t

      • environmental damage per unit of fuel, 89

      • natural gas combustion, 136

      • particulate matter, 20, 68

      • population exposure, 69, 71, 72–73

      • share of coal emissions damages, 133–134, 134f

      • sources of, 20, 46, 48

    • Norway, 49b

    • Nuclear power, 45b

    O

    • Offset provisions, 44

    • Organization for Economic Cooperation and Development, 24–26, 25f, 26f, 57, 78–79

    • Outcomes of fossil fuel use

      • adverse externalities, 14

      • carbon charge modeling methodology, 4–5

      • economic costs, 1, 37–38b

      • estimated effects of fuel tax reform, 7–8, 7f

      • findings, 5

      • global climate change, 1

      • goals of fiscal policy reform, 2

      • mortality, 1

      • See also Environmental damage; Health outcomes

    • Ozone, 20

    P

    • Particulate matter

      • damage estimates, 83, 92–95t

      • damage per unit of fuel, 89

      • estimating mortality risk from, 75–76

      • estimating population exposure to, 68–73

      • from gasoline combustion, 139

      • global concentrations, 21

      • health threats from, 20–21, 68

      • natural gas combustion, 136

      • power generation fuel tax design, 46

      • share of coal emissions damages, 133–134, 134f

      • sources, 20, 46, 68

    • Payroll taxes, 40

    • Poland

      • air pollution damage valuation, 81–82

      • fuel mix, 13

      • motor fuel taxes, 137–139, 141

      • potential revenue from corrective fuel taxes, 144

      • See also International comparison

    • Political functioning, 4, 31

    • Population density, 13–14, 15f

    • Population exposure to air pollution

      • modeling methodology, 68–73

      • mortality risk, 73–76, 75f

      • valuing mortality risk, 76–87

    • Power generation, environmental tax design for, 46, 51, 53, 60

    • Private sector innovation, 54–56

    R

    • Regulatory policies, 34–36, 51–52

    • Renewable energy

      • international comparison of fuel mix, 13, 14f

      • policies to promote, energy taxation and, 44, 50, 51

      • to reduce carbon dioxide emissions, 32

      • subsidies, 34

    • Research and development, 55

    • Risk valuation, 76–87

      • traffic accidents, 111–115

    • Road damage costs, 22, 48, 49, 115–117, 118, 127, 142

    • Russia, 115. See also International comparison

    S

    • Shale gas extraction, 45b

    • Singapore, 49b

    • Social cost of carbon, 65, 66

    • South Africa

      • air pollution damage valuation, 82, 83

      • fuel mix, 13

      • motor fuel taxes, 141

      • potential revenue from corrective fuel taxes, 144

      • traffic congestion costs, 108

      • See also International comparison

    • Subsidies, energy use

      • current practice, 26–27, 27f

      • data sources, 148

      • to firms, 59

      • to households, 57–58, 58f

      • natural gas, 136

      • to promote technology adoption, 56

      • for renewable energy, 34

    • Sulfur dioxide

      • from coal combustion, 20, 33b, 46, 82f, 83, 84f, 133–134, 134f

      • emissions reduction strategies, 33b

      • from gasoline combustion, 139

      • international comparison of air pollution damage, 92–95t

      • from natural gas combustion, 136

      • population exposure to health risks from, 68, 69, 70, 71, 72–73, 86–87

      • vehicle emissions, 89

    • Sweden, 41b, 50b, 114. See also International comparison

    T

    • Tax policy. See Energy taxes

    • Tax shifting, 41–42, 41b

    • Technology development and deployment, 54–56

    • Temperature rise, global

      • current trends, 1

      • effects of, 18

      • energy use and, 17–18

      • projections, 17–18, 19f

    • Thailand

      • air pollution damage valuation, 83

      • motor fuel taxes, 141

      • population distribution, 14

      • See also International comparison

    • TM5-FASST, 83–87, 96

    • Trade fees and tariffs, 59

    • Traffic accidents

      • associated risks and costs, 1, 24, 24f, 111–113, 114–115, 115f, 116f, 117–118

      • as component of corrective taxes for motor fuel, 5–7, 127, 139–141 cost calculations, 5, 111, 125–126

      • data sources, 111

      • distance-based taxes to mitigate costs of, 3–4, 48–49

      • external cost assessment, 113–114

      • fuel taxes to mitigate costs of, 5–6

      • mortality, 24, 24f

      • trucks in, 113

    • Traffic congestion

      • city-level delays, 102–104, 103t

      • corrective tax rationale, 22–23

      • cost calculations, 5, 101, 105–111, 109f, 110f, 117–119

      • country-level delay data, 101, 104–105, 117–119, 120–121, 124–125

      • distance-based taxes to mitigate costs of, 3–4, 23, 33b, 48, 49–50b, 101

      • fuel taxes to mitigate costs of, 5–6, 101, 128, 139–141

      • international comparison, 23, 23f

      • sources of costs related to, 1, 101, 102b

      • strategies for reducing, 33

      • vehicle mix as cost factor in, 107–108, 121–123

    • Turkey

      • motor fuel taxes, 137–139, 141, 142

      • potential revenue from corrective fuel taxes, 144

      • traffic congestion costs, 108

      • See also International comparison

    U

    • United Kingdom

      • air pollution damage valuation, 81–82

      • cost to others of motor vehicle use, 1

      • motor fuel taxes, 137–139

      • potential revenue from corrective fuel taxes, 144

      • traffic accident costs, 114

      • traffic congestion costs, 49–50b, 108, 109, 124–125

      • See also International comparison

    • United Nations Framework Convention on Climate Change, 67

    • United States

      • air pollution damage valuation, 81–82, 83, 86

      • air pollution mortality estimates, 74–75

      • corrective coal tax estimates, 131–132

      • costs of air pollution, 20

      • costs of premature mortality, 1

      • environmental damage per unit of fuel, 89

      • motor fuel taxes, 141

      • motor vehicle taxes, 48, 50b

      • per capita primary energy use, 11

      • potential revenue gains of energy tax reform, 8

      • traffic accident costs, 114

      • traffic congestion costs, 108, 109, 124

      • See also International comparison

    V

    • Value-added tax systems, 40, 40b

    • Value of travel time, 106–107, 107t, 108f

    • Volatile organic compounds, 20

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