The distributional effects of transport cost and its impact on income inequality : evidence for Lisbon and Porto Metropolitan Areas

Detalhes bibliográficos
Autor(a) principal: Almeida, Rafael Pequito de
Data de Publicação: 2022
Tipo de documento: Dissertação
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.5/26383
Resumo: Mestrado Bolonha em Economia e Políticas Públicas
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spelling The distributional effects of transport cost and its impact on income inequality : evidence for Lisbon and Porto Metropolitan AreasInequalityfuel taxesprogressivityMestrado Bolonha em Economia e Políticas PúblicasThe impact of fuel consumption on climate change has prompted governments to increase the taxation of fossil fuels. This is often referred to as a Pigouvian tax, in other words, a tax that attempts to internalize a social cost (i.e., negative externality). However, indirect taxes like this risk being regressive – i.e., affecting disproportionally more the poorer members of society -, because their rates are invariant with consumers’ income level. To ensure social justice in fuel taxation it is important to analyse the regressivity of fuel taxes. Furthermore, since richer people tend to pollute more, to effectively decrease pollution from fossil fuel consumption, it might be important to tax the richest people relatively more. On the other hand, public transportation is more fuel and energy efficient compared to motorized private cars, which combined with the nature of its cost technology (i.e., large, fixed costs, average cost higher than marginal cost), justify subsidizing public transport use. In contrast to fuel prices and taxes, public transport pricing often includes social fares for more vulnerable groups of society – e.g., children, the elderly, and the unemployed -, which promotes social justice. This paper analyses the degree of progressivity, or regressivity, of transport costs relating to driving (i.e., fuel, tolls, parking) and public transport use in the metropolitan areas of Lisbon and Porto. We use data on transport expenses and analyse the degree of progressivity, or regressivity, and the impact that these expenses have on income inequality by comparing the Gini index of income before and after transport expenses. The findings indicate that transport expenses increase inequality and that taxes can be slightly regressive. To evaluate the progressivity of fuel taxes we use the Suits index, which shows a slight regressivity of the fuel taxes. The policy implications from this analysis show the importance of investment in alternatives to reduce the use of private motorized vehicles, as well as in reducing the price of public transportation, at least in big cities where this kind of transportation is more viable.Instituto Superior de Economia e GestãoMelo, PatríciaRepositório da Universidade de LisboaAlmeida, Rafael Pequito de2022-12-07T10:22:35Z2022-102022-10-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.5/26383engAlmeida, Rafael Pequito de (2022). “The distributional effects of transport cost and its impact on income inequality : evidence for Lisbon and Porto Metropolitan Areas ”. Dissertação de Mestrado. Universidade de Lisboa. Instituto Superior de Economia e Gestãoinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:55:51Zoai:www.repository.utl.pt:10400.5/26383Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:10:02.739260Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The distributional effects of transport cost and its impact on income inequality : evidence for Lisbon and Porto Metropolitan Areas
title The distributional effects of transport cost and its impact on income inequality : evidence for Lisbon and Porto Metropolitan Areas
spellingShingle The distributional effects of transport cost and its impact on income inequality : evidence for Lisbon and Porto Metropolitan Areas
Almeida, Rafael Pequito de
Inequality
fuel taxes
progressivity
title_short The distributional effects of transport cost and its impact on income inequality : evidence for Lisbon and Porto Metropolitan Areas
title_full The distributional effects of transport cost and its impact on income inequality : evidence for Lisbon and Porto Metropolitan Areas
title_fullStr The distributional effects of transport cost and its impact on income inequality : evidence for Lisbon and Porto Metropolitan Areas
title_full_unstemmed The distributional effects of transport cost and its impact on income inequality : evidence for Lisbon and Porto Metropolitan Areas
title_sort The distributional effects of transport cost and its impact on income inequality : evidence for Lisbon and Porto Metropolitan Areas
author Almeida, Rafael Pequito de
author_facet Almeida, Rafael Pequito de
author_role author
dc.contributor.none.fl_str_mv Melo, Patrícia
Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Almeida, Rafael Pequito de
dc.subject.por.fl_str_mv Inequality
fuel taxes
progressivity
topic Inequality
fuel taxes
progressivity
description Mestrado Bolonha em Economia e Políticas Públicas
publishDate 2022
dc.date.none.fl_str_mv 2022-12-07T10:22:35Z
2022-10
2022-10-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/masterThesis
format masterThesis
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/26383
url http://hdl.handle.net/10400.5/26383
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Almeida, Rafael Pequito de (2022). “The distributional effects of transport cost and its impact on income inequality : evidence for Lisbon and Porto Metropolitan Areas ”. Dissertação de Mestrado. Universidade de Lisboa. Instituto Superior de Economia e Gestão
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Instituto Superior de Economia e Gestão
publisher.none.fl_str_mv Instituto Superior de Economia e Gestão
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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