Pigouvian taxA Pigouvian tax (also spelled Pigovian tax) is a tax on any market activity that generates negative externalities (i.e., external costs incurred by the producer that are not included in the market price). The tax is normally set by the government to correct an undesirable or inefficient market outcome (a market failure) and does so by being set equal to the external marginal cost of the negative externalities. In the presence of negative externalities, social cost includes private cost and external cost caused by negative externalities.
Price discriminationPrice discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are sold at different prices by the same provider in different market segments. Price discrimination is distinguished from product differentiation by the more substantial difference in production cost for the differently priced products involved in the latter strategy. Price differentiation essentially relies on the variation in the customers' willingness to pay and in the elasticity of their demand.
Road taxRoad tax, known by various names around the world, is a tax which has to be paid on, or included with, a motorised vehicle to use it on a public road. All states and territories require an annual vehicle registration fee to be paid in order to use a vehicle on public roads; the cost of which varies from state to state and is dependent on the type of vehicle. The fee is known colloquially as 'rego' (pronounced with a soft g, short for registration). Queensland road tax is based on the number of cylinders or rotors the vehicle's engine has.
RationingRationing is the controlled distribution of scarce resources, goods, services, or an artificial restriction of demand. Rationing controls the size of the ration, which is one's allowed portion of the resources being distributed on a particular day or at a particular time. There are many forms of rationing, although rationing by price is most prevalent. Rationing is often done to keep price below the market-clearing price determined by the process of supply and demand in an unfettered market.
Peak carPeak car (also peak car use or peak travel) is a hypothesis that motor vehicle distance traveled per capita, predominantly by private car, has peaked and will now fall in a sustained manner. The theory was developed as an alternative to the prevailing market saturation model, which suggested that car use would saturate and then remain reasonably constant, or to GDP-based theories which predict that traffic will increase again as the economy improves, linking recent traffic reductions to the Great Recession of 2008.
Social costSocial cost in neoclassical economics is the sum of the private costs resulting from a transaction and the costs imposed on the consumers as a consequence of being exposed to the transaction for which they are not compensated or charged. In other words, it is the sum of private and external costs. This might be applied to any number of economic problems: for example, social cost of carbon has been explored to better understand the costs of carbon emissions for proposed economic solutions such as a carbon tax.
European emission standardsThe European emission standards are vehicle emission standards for pollution from the use of new land surface vehicles sold in the European Union and European Economic Area member states and the United Kingdom, and ships in EU waters. The standards are defined in a series of European Union directives staging the progressive introduction of increasingly stringent standards. the standards do not include non-exhaust emissions such as particulates from tyres and brakes.
Effects of carsCars affect many people not just drivers and car passengers. The externalities of automobiles, similarly to other economic externalities, are the measurable difference in costs for other parties to those of the car proprietor, such costs not taken into account when the proprietor opts to drive their car.
