사회과학연구(SSK)지원사업_기후변화연구소_1

 "Optimal Dynamic Taxation with Vehicle Fuel Efficiency: Pigou Meets Ramsey"

   최봉석(국제통상학과 교수 / 국민대학교)

Abstract
 

This paper theoretically characterizes the durable nature of vehicles and then quantifies the second-best optimal gasoline tax on vehicles using a dynamic stochastic general equilibrium framework. The model incorporates a putty–clay production function, the miles a vehicle travels, where transportation capital goods are combined with gasoline in a fixed proportion. Vehicles are durable goods for which technological characteristics are pre-determined; therefore, people can only alter how often to utilize vehicles and how much they drive in response to exogenous shocks. From the dynamic Ramsey perspective, in response to a 1% permanent gasoline price hike, households use the immediate savings from the reduction of gasoline consumption to consume 3.5% more of the fuel efficiency of new vehicles. The corporate average fuel economy standard regulation reduces gasoline consumption and guides households to invest their immediate savings into improving fuel efficiency. Our results uncover the important features of the Ramsey environmental policy in the presence of the putty–clay nature of transportation capital.

Keywords: Gasoline use; Fuel efficiency; Ramsey Taxation; Pigouvian Taxation

JEL Classification: H21, H23, Q43, E22, Q48