Open AccessA Note on Petrol Versus Diesel Transport An Assessment of a Policy Option
Author(s) -
Abdul Majeed
Publication year - 1977
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v16i3pp.336-344
Subject(s) - diesel fuel , gasoline , argument (complex analysis) , economics , section (typography) , public economics , econometrics , automotive engineering , business , engineering , waste management , advertising , medicine
The policy of higher tax on petrol than on diesel gasolineencourages diesel transport. This may cause distortion and suboptimalallocation. This note is aimed at testing this hypothesis empirically.The First section briefly des¬cribes the petrol versus diesel argument.In the Second section cost compari¬sons are made for two petrol anddiesel vehicles of comparable performance. The conclusion and policyoptions are discussed in the Third section.