This paper analyses the impacts of highway development with different financing strategies. We examine two ways in which the government can finance highway development projects: it can (a) use current tax system, or (b) impose earmarked taxes. Our model is composed of a transport network model and a multi-regional Computable General Equilibrium model. The model specifies the behaviours of sixteen producers, four regional households, four regional governments, a central government, and the rest of the world. The results indicate that imposing regional earmarked taxes has a greater effect on income growth and the reduction of regional income inequality than does the current tax system.
|Original language||English (US)|
|Number of pages||23|
|Journal||Journal of Transport Economics and Policy|
|State||Published - May 2011|
ASJC Scopus subject areas
- Economics and Econometrics
- Management, Monitoring, Policy and Law