Effects of raising fuel price on reduction of household trouble GHG emissions: a case study of Sydney
Abstract: The purpose of this paper was to investigate the relationship between fuel price, land use characteristics and household travel green house gas (GHG) emissions in Sydney, and determine fuel price policy implications to efficiently reduce overall travel GHG emissions in the short-term, taking into account social equity. There were three main findings. Firstly, econometric analysis revealed that household travel emissions was reduced as fuel price increased, and the effect of fuel price change could vary substantially across the whole metropolitan area, and households living in higher density areas have higher fuel elasticity in terms of reducing travel emissions. Scenario analysis showed that, to some extent, raising fuel price effectively reduced overall travel GHG emissions in the short-term; however, the marginal effect of raising price on emissions reduction showed a decrease and the effect of implementing fuel price policy only was limited. A greater reduction effect could be achieved longterm through the combination of fuel price policy and land use policy. Thirdly, a proportion of poor socioeconomic households were in the highest emissions quintile, with car emissions very high among their overall emissions. This suggests that care should be taken when implementing fuel price policies to ensure that such households are not negatively impacted
