Designing Policies to Green Road Transportation

 Only a set of complementary policies can address traffic externalities. There is no silver bullet.  The prevailing set of policies places too much emphasis on fuel efficiency and too little on curbing mileage.  Fuel taxes and road pricing strongly affect driving.  Progressive tax credits at the point of purchase can help overcome barriers in electric vehicle adoption.  Recycling revenues from fuel and road pricing for public transport multiplies the impact of policies.