%0 Journal Article
%T Vehicle ownership and usage charges
%J Transport policy
%D 2010
%A Muthukrishnan, Subhashini
%V 17
%N 6
%P 398-408
%X We present a simple model to study the welfare effects of a shift from ownership to usage taxes for cars. We consider a model in which a single representative consumer derives utility from consuming two goods--consumption of motor vehicle kilometers, and an aggregate consumption good treated as numeraire. We characterize the optimal consumption of car kilometers by a representative car user and find that a shift from ownership towards usage taxes is not necessarily welfare-improving: while a revenue-neutral shift makes the representative car user worse off; a utility-neutral shift leads to a significant loss of revenue to the government. An empirical analysis based on Singapore data is also consistent with our theoretical results.<p />
%G en
%I Elsevier Publishing
%@ 0967-070X
%U http://dx.doi.org/10.1016/j.tranpol.2010.04.007