Reducing the negative impact of motor transport on the environment: Prospects for the use of fiscal instruments in Russia

Abstract

The study focuses on the fact that, in major Russian cities, up to 80% of the negative impact on the environment is formed by motor transport emissions. The authors analyze the indicators of the negative impact due to the forced increase in the Russian fleet and the age pattern of the Russian fleet is researched. The proposed paper argues the conclusion that fleet capacity leads to an increase in its quantitative indicators, but does not lead to a rapid displacement of cars with the environmental classes 1 and 2. In Russia, the share of these vehicle classes continues to be very high. The presented research analyzes the reasons for the conservation of the unsatisfactory environmental Russian fleet structure. The conclusion is proved that one of the significant reasons for the continued manufacturing and consumption of low environmental class vehicles is the lack of real tax incentives. The authors analyze the fiscal payment’s system in the production and consumption of vehicles. It is concluded that these payments do not depend now on the environmental performance of the vehicle. The research paper introduces the renewed combination of tax instruments, the implementation of which will encourage producers and consumers to produce and purchase cars of a higher environmental class. The presented paper provides producers to make the excise tax on the car sale and disposal charge to be dependent on engine power and environmental class. The authors argue that the higher costs will be made up by the manufacturers’ lower tax payments. As a result, it will not lead to a sharp increase in car prices. For consumers it is proposed to modify the transport tax, the value of which should be dependent on the environmental class of the car. Environmentally-orientedtransport tax will stimulate consumers to purchase cars of a higher environmental class with the expectation that their higher costs will be paid off later with lower tax payments. © 2014 WIT Press.