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The kilometer tax and Swedish industry–effects on sectors and regions

Year: 2009

Type: article

Abstract: An introduction of a kilometer tax for heavy goods vehicles can be constrained by the risk of that higher production costs than competitors in other countries will negatively affect regions and industries of policy concern. We estimate factor demand elasticities in the Swedish manufacturing industry using firm level data for the 1990 to 2001 period on input prices and quantities. The results show that the introduction of a kilometer tax for heavy goods vehicles decreases transport demand and increases labour demand. The effects are less pronounced in terms of changes in output, though some industries (e.g. wood, pulp and paper) can be expected to be affected more than others due to their dependence on road freight transport. The regional dimension regarding the consequences of a kilometer tax seems to be small or even nonexisting.

Source: Applied Economics

DOI: 10.1080/00036840802600608

Authors: Henrik Hammar, Tommy Lundgren, Magnus Sjöström, Matts Andersson

Institutions: University of Gothenburg, Swedish University of Agricultural Sciences, Umeå University, WSP Sverige (Sweden)

Language: English

Topic: transportation and logistics systems

Subfield: Transportation

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: green

OpenAlex ID: W2116967271

FWCI: 1.622

Cites: 26

Cited by: 6

Related to: 10