Abstract
This paper studies impacts of fiscal measures on atmospheric pollution from transport in Czech cities. Its purpose is to simulate impacts of selected policy measures on transport behavior, induced external effects of air pollution and public-finance aspects of regulation.
To do that, we estimate a microeconomic model of transport behavior of households and public transport agencies. The model is calibrated and simulated for 19 Czech cities.
The paper also discusses econometric techniques to estimate structural parameters of the model under different assumptions of available data. It shows that to regulate air pollution externalities the increase in the excise tax on fuels seems to be the best option.
In cities, with operation costs of public transport significantly subsidized, it should be accompanied by fare increase, because of costs of public funds. Decrease in fares is unlikely welfare improving because of small induced modal split and high requirements of public funds needed to cover such policy.