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Abstract

Since 1990, Belgium has managed to bring down greenhouse gas emissions in most domains of economic activity. Road transport, as in many other countries, is a notable exception to this pattern: emissions have steadily increased, driven by an ever higher consumption of petrol and diesel. Even though the current overall performance will probably be sufficient to reach the reduction objectives of the Kyoto protocol, transport emissions thus need to be targeted in the future. One possible measure aimed at reducing them, an increase in fuel taxes, is examined in detail in this paper. The success of such a policy depends on the price elasticity of fuel demand, and therefore, the latter is estimated for Belgium and other European countries. The elasticities obtained are relatively small: in Belgium, for instance, a 10% increase in prices would cause consumption to fall by around 1.8% in the short-run and 2.3% in the medium run. Tax increases alone will thus certainly be insufficient for cutting emissions at this time horizon. Nevertheless, as a supporting measure in a more general reduction strategy, they could still yield substantial advantages. This Working Paper relates to the 2011 OECD Economic Review of Belgium (www.oecd.org/eco/surveys/Belgium). Emissions de gaz a effet de serre et elasticites-prix de la demande de carburants en Belgique Depuis 1990, la Belgique a reussi a reduire ses emissions de gaz a effet de serre (GES) dans la plupart des domaines d'activite economique. Comme dans de nombreux autres pays, le transport routier constitue a cet egard une exception notable : ses emissions ont regulierement augmente, sous l'effet d'une consommation toujours croissante d'essence et de gazole. Meme si les performances globales actuelles seront sans doute suffisantes pour atteindre les objectifs de reduction des emissions de GES du Protocole de Kyoto, un objectif doit donc etre defini pour les futures emissions des transports. Une des mesures envisageables pour les faire diminuer, une hausse des taxes sur les carburants, est examinee de maniere approfondie dans ce document. La reussite d'une telle mesure depend de l'elasticite-prix de la demande de carburants, ce qui nous amene a estimer celle-ci pour la Belgique et d'autres pays europeens. Les elasticites obtenues sont relativement modestes : en Belgique, par exemple, une hausse des prix de 10 % entrainerait un recul de la consommation de l'ordre de 1.8 % a court terme, et de 2.3 % a moyen terme. De simples augmentations des taxes seront donc certainement insuffisantes pour reduire les emissions a cet horizon. Neanmoins, en tant que mesures d'accompagnement s'inscrivant dans le cadre d'une strategie plus generale de reduction des emissions de GES, elles pourraient avoir des retombees positives substantielles. Ce Document de travail se rapporte a l’Etude economique de l’OCDE de la Belgique 2011 (www.oecd.org/eco/etudes/Belgique).


Original document

The different versions of the original document can be found in:

https://www.oecd-ilibrary.org/economics/greenhouse-gas-emissions-and-price-elasticities-of-transport-fuel-demand-in-belgium_5k9b7bnr2z28-en,
https://econpapers.repec.org/RePEc:oec:ecoaaa:955-en,
https://academic.microsoft.com/#/detail/2126664455
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Published on 01/01/2012

Volume 2012, 2012
DOI: 10.1787/5k9b7bnr2z28-en
Licence: CC BY-NC-SA license

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