Transport Consumption Inequalities And Redistributive Effects Of Taxes: A Repeated Cross-Sectional Evaluation On French Household Data

Date Added: Dec 2009
Format: PDF

This paper evaluates transport consumption inequalities among French households, investigates their temporal dynamics, and estimates the redistributive effects of taxes on different commodity categories. A decomposition by expenditure component of the Gini coefficient is applied, using household-level data from five expenditure surveys conducted between the end of the 1970's and the early 2000's. The results highlight the effect of car social diffusion. Indeed, the relative contribution to global inequality of car use items, especially fuels, decreased regularly over time, reflecting the more and more widespread use of the car. Moreover, fuel taxes become regressive, while the progressive character of taxes on the remaining car use commodities weakens over time.