Theoretical framework for building optimal transport taxation system

Yulia V. Leontyeva, Igor A. Mayburov

Abstract


The purpose of this article is to analyze the theoretical and methodological basis of building an optimal transport taxation system. That includes establishing classification criteria, functions and principles of building the system. The article systematizes economic views on the nature of transport taxes and outlines the genesis of transport taxation. The article substantiates that the genesis of studies on transport taxation involved the development of economic measures of the size of compensation which followed the special-to-general model, that is, from compensation for the use of particular road network facilities to compensation for the entirety of negative externalities and the use of the whole road network. The article systemizes functions of transport taxation and analyses its two main functions: fiscal and regulatory ones. The article rationalizes that the regulatory function in transport taxation is equally significant. The article analyzes negative external effects resulting from accelerated growth in car ownership. In addition, it substantiates that pure public benefits relating to motor vehicle use tend to transform into mixed benefits in the course of mass car ownership, which, in turn, remain non-excludable, but become rivalrous in consumption. The work presents an original classification of transport taxes based on the main classification criteria. Transport taxes are classified based on types and designation of transport payments, stages of the life cycle of a motor vehicle, the way the tax is levied, the influence it has on the intensity of car use and the purpose of revenue spending. The work offers a system of principles of optimal transport taxation consisting of well-known and new ones. The article further develops the benefit principle in transport taxation as well as the social optimum principle. In addition, it provides definitions for original principles identified by the author: the principle of comprehensiveness, the principle of differentiation, the principle of payment collection at time of service, and the principle of designation.

Keywords


transport taxation; taxes; fees; classification; function; principles of optimal taxation

Full Text

PDF

References


Mayburov Igor A., Leontyeva Yulia V. Prospects of regulating car use in Russia by means of taxation. Innovation, Entrepreneurship and Digital Ecosystems. Book proceedings of 9th EuroMed Conference of the EuroMed Academy of Business. University of Warsaw, Digital Economy Lab, 2016, pp. 1249–1255.

Mayburov Igor A., Leontyeva Yulia V. Ecologization of transport taxes as a perspective vector of their improvement. Finansy = Finance, 2014, no. 9, pp. 35–39. (In Russ.).

Mayburov Igor A., Ivanov Yu. B. (eds). Entsiklopediya teoreticheskikh osnov nalogooblozheniya [Encyclopedia of theoretical bases of taxation]. Moscow, Yuniti-Dana Publ., 2016. 503 p.

Derycke Pierre-Henri. Road pricing — analysis and policies (a historical perspective). Recherches Economiques de Louvain, 1998, vol. 64, iss. 1, pp. 63–74.

Lindsey Robin. Do economists reach a conclusion on road pricing? Econ Journal Watch, 2006, vol. 3, no. 2, pp. 292–379.

Pigou Arthur Cecil. The Economics of Welfare. London, Macmillan and Co. Publ., 1920, 896 p.

Newbery David M., Santos D Georgina. Road taxes, road user charges and earmarking. Fiscal Studies, 1999, vol. 20, iss. 2, pp. 103–132.

Vickrey William. Pricing in Urban and Suburban Transport. American Economic Review, 1963, vol. 52, iss. 2, pp. 452–465.

Coase Ronald H. The problem of social cost. Journal of Law and Economics, 1960, vol. 3 (1), pp. 1–44.

De Borger Bruno. Optimal congestion taxes in a time allocation model. Transportation Research Part B — Methodological, 2011, vol. 45, iss.1, pp. 79–95.

De Borger Bruno, Mayeres Inge. Optimal taxation of car ownership, car use and public transport: Insights derived from a discrete choice numerical optimization model. European Economic Review, 2007, vol. 51, pp. 1177–1204.

Baumol William J. On taxation and the control of externalities. The American Economic Review, 1972, vol. 62, no. 3, pp. 307–322.

Litman Todd A. Using Road Pricing Revenue: Economic Efficiency and Equity Considerations. Victoria Transport Policy Institute Publ., Canada, 2011. 15 p.

Mayburov Igor A., Leontyeva Yulia V. Transport tax in Russia as a promising tool for reduction of airborne emissions and development of road network. WIT Transactions on Ecology and the Environment. Air Pollution XXIII, 2015, vol. 98, pp. 391–401. DOI: 10.2495/AIR150341.

Small Kenneth A., Verhoef Erik. The Economics of Urban Transportation. Routledge. New York, 2007. 238 p.

Mayburov Igor A., Sokolovskaya A. M. Teoriya nalogooblozheniya. Prodvinutyi kurs [Theory of Taxation. An Advanced Course]. Moscow, Yuniti-Dana Publ., 2011. 591 p.

Mayburov Igor A., Leontyeva Yulia V. Reducing the negative impact of motor transport on the environment: prospects for the use of fiscal instruments in Russia. WIT Transactions on Ecology and the Environment. Energy and Sustainability, 2014, vol. 186, pp. 863–874. DOI: 10.2495/ESUS140771.

Clarke Harry, Prentice David. A Conceptual Framework for the Reform of Taxes Related to Roads and Transport. Canberra, La Trobe University Publ., 2009. 69 p.

Delucchi Mark. Do motor-vehicle users in the US pay their way? Transportation Research Part A: Policy and Practice, 2007, vol. 41, iss. 10, pp. 982–1003.

Harberger Arnold C. The incidence of the corporation income tax. Journal of Political Economy, 1963, vol. 70, no. 3, рр. 215–240.

Litman Todd A. Transportation Cost and Benefit Analysis: Techniques, Estimates and Implications. Victoria Transport Policy Institute Publ., Canada, 2003. 19 p.

Verhoef Erik. External effects and social costs of road transport. Transportation Research, 1994, vol. 28a, no. 4, pp. 273–287.

Levinson David M. Equity effects of road pricing: a review. Transport Reviews, 2010, vol. 30, iss. 1, pp. 33–57.

Wardrop John Glen. Some theoretical aspects of Road Traffic research. Road Paper № 36. Proceedings of the Institution of Civil Engineers, 1952, vol. 1, pr. 2, pp. 325–362.

Vuchic Vukan R. Urban Public Transportation: Systems and Technology. Englewood Cliffs, NJ, Prentice-Hall, 1981. 673 p.

Holden David J. Wardrop third principle: urban traffic congestion and traffic policy. Journal of Transport Economics and Policy, 1989, vol. 23, no. 3, pp. 239–262.




DOI: http://dx.doi.org/10.15826/jtr.2016.2.3.024

Copyright (c) 2016 Yulia V. Leontyeva, Igor A. Mayburov

eLibrary logoeLibrary logo  DOAJ logo ERIH PLUS logo 

 

© Journal of Tax Reform : ISSN 2414-9497 (online), ISSN 2412-8872 (print)