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dc.titlePolicy options to mitigate the fiscal impact of road transport decarbonization: the case of Costa Rica
dc.contributor.authorVogt-Schilb, Adrien
dc.contributor.authorJaramillo, Marcela
dc.contributor.authorVíctor-Gallardo, Luis
dc.contributor.authorQuirós-Tortos, Jairo
dc.contributor.authorRodríguez-Zúñiga, Mónica
dc.contributor.orgunitClimate Change Solutions Division
dc.contributor.orgunitClimate Change Solutions Division
dc.coverageCosta Rica
dc.date.available2021-07-21T00:07:00
dc.date.issue2021-07-21T00:07:00
dc.description.abstractDecarbonizing road transport through electrification, public transport, and walking and biking can increase productivity and reduce expenses thanks to reduced traffic and energy efficiency gains. However, governments face losing fuel and vehicle tax revenue. We develop a method to assess options to maintain fiscal revenues without hampering decarbonization benefits. We estimate the financial impact of the transition on the government, firms (buses, taxis, freight, and other private uses), and households grouped by income level and region of residence. Then, we evaluate the impact of energy, property, import, and distance-based tax adjustments on these actors. We apply the method to Costa Rica, a country committed to reaching net-zero emissions by 2050 and where 20% of government revenue comes from transport taxes. Decarbonizing transport would cause a fiscal impact of -0.41% of GDP on average between 2023-50, which is lower than the financial benefits on households and firms: 1.49% of GDP. We show that a combination of tax adjustments would eliminate the fiscal impact while maintaining net benefits for all firms and households of all income levels and regions of residence.
dc.format.extent27
dc.identifier.doihttp://dx.doi.org/10.18235/0003402
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Policy-options-to-mitigate-the-fiscal-impact-of-road-transport-decarbonization-the-case-of-Costa-Rica.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/spanish/document/Impacto-fiscal-de-la-descarbonizacion-del-transporte-en-Costa-Rica-y-opciones-de-politica-para-manejarlo.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectUrban Transport
dc.subjectTaxation
dc.subjectFiscal Policy
dc.subjectPublic Transport
dc.subjectDecarbonization
dc.subjectSustainable Transport
dc.subjectSmall Business
dc.subjectClimate Change Mitigation
dc.subjectMode of Transport
dc.subjectTax Collection
dc.subjectGross Domestic Product
dc.subjectTax Revenue
dc.subjectElectric Vehicle
dc.subjectLow-Carbon Economy
dc.subjectRoad Transport
dc.subjectElectric Mobility
dc.subject.jelcodeQ54 - Climate • Natural Disasters and Their Management • Global Warming
dc.subject.keywordsdecarbonization;Fiscal policy;Road Transport;economic impacts;Energy Modeling
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01262
idb.operationRG-E1563
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