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The kilometer tax and Swedish industry - Effects on sectors and regions

[journal article]

Hammar, Henrik; Lundgren, Tommy; Sjöström, Magnus; Andersson, Matts

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Please use the following Persistent Identifier (PID) to cite this document:http://nbn-resolving.de/urn:nbn:de:0168-ssoar-242993

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Abstract An introduction of a kilometer tax for heavy goods vehicles can be constrained by the risk of that higher production costs than competitors in other countries will negatively affect regions and industries of policy concern. We estimate factor demand elasticities in the Swedish manufacturing industry using firm level data for the 1990-2001 period on input prices and quantities. The results show that the introduction of a kilometer tax for heavy goods vehicles decreases transport demand and increases labor demand. The effects are less pronounced in terms of changes in output, though some industries (e.g. wood, and pulp- and paper) can be expected to be affected more than others due to their dependence on road freight transport. The regional dimension regarding the consequences of a kilometer tax seems to be small or even non-existing. [author's abstract]
Keywords environment tax; transportation policy; finishing industry; Sweden
Classification National Economy; Economic Sectors; Ecology, Environment
Free Keywords factor demand; kilometer tax; manufacturing industry; transport policy
Document language English
Publication Year 2009
Page/Pages 31 p.
Journal Applied Economics (2009)
DOI http://dx.doi.org/10.1080/00036840802600608
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)