%0 Journal Article
%T The Optimal Gasoline Tax for China
%A C.-Y. Cynthia Lin
%A Jieyin Zeng
%J Theoretical Economics Letters
%P 270-278
%@ 2162-2086
%D 2014
%I Scientific Research Publishing
%R 10.4236/tel.2014.44037
%X <p class=\"MsoNormal\" style=\"text-align:justify;\">
	<span style=\"font-family:Verdana;\" lang=\"EN-US\">Gasoline-powered vehicles produce many negative externalities including
congestion, air pollution, global climate change, and accidents. A gasoline tax
is perhaps the best policy to jointly address these externalities. This paper
calculates the optimal gasoline tax for China. Using a model developed by Parry
and Small </span><span lang=\"TR\"><span style=\"font-family:Verdana;\" lang=\"EN-US\">[1]</span><span lang=\"EN-US\"><!--[if gte mso 9]><xml>
 <w:data>08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000E0000005F005200650066003300380035003600300030003200350032000000</w:data>
</xml><![endif]--></span></span><span lang=\"EN-US\"> </span><span lang=\"TR\"><span style=\"font-family:Verdana;\" lang=\"EN-US\">[2]</span><span lang=\"EN-US\"><!--[if gte mso 9]><xml>
 <w:data>08D0C9EA79F9BACE118C8200AA004BA90B02000000080000000E0000005F005200650066003300380035003600300030003200350036000000</w:data>
</xml><![endif]--></span></span><span style=\"font-family:Verdana;\" lang=\"EN-US\">, we calculate the optimal adjusted Pigovian tax in China to be $1.58/gallon
which is 2.65 times more than the current level. Of the externalities
incorporated in this Pigovian tax, the congestion costs are taxed the most
heavily, at $0.82/gallon, followed by local air pollution, accident
externalities, and finally global climate change.</span> 
</p>
%K Gasoline Tax
%K China
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=45233