Internalizando externalidades: El impuesto a la gasolina en Guatemala

Authors

  • Arturo Antón Sarabia Centro de Investigación y Docencia Económicas
  • Fausto Hernández Trillo Escuela de Ciencias Sociales, ITESM

DOI:

https://doi.org/10.21919/remef.v14i1.356

Keywords:

gasoline tax, pollution, congestion, Guatemala

Abstract

(Internalizing externalities: Gasoline tax in Guatemala)

The objective of this article is to estimate the optimal level of the tax on gasoline to internalize the costs caused by the use of cars in a developing country such as Guatemala. The estimation is done using the methodology by Parry and Small (2005). The results suggest an optimal tax level of USD27.5 cents per liter. Forty percent of the tax is explained by the externalities associated to traffic congestion. The estimated level of USD27.5 cents per liter is above the tax currently imposed for the two types of gasoline sold in Guatemala, thus their adjustment is recommended. There is a degree of uncertainty regarding the proper value of some of the parameters of the model; however, the sensitivity analysis reports that the results are robust. The study stands out among others because it offers a detailed procedure for the estimation of this tax, using information from a developing country. Finally, the need to implement public policies to decrease the adverse effects of the tax, especially among middle and lower decile households.

Downloads

Metrics

PDF views
244
Jan 2019Jul 2019Jan 2020Jul 2020Jan 2021Jul 2021Jan 2022Jul 2022Jan 2023Jul 2023Jan 2024Jul 2024Jan 2025Jul 2025Jan 202646
|
HTML views
188
Jan 2019Jul 2019Jan 2020Jul 2020Jan 2021Jul 2021Jan 2022Jul 2022Jan 2023Jul 2023Jan 2024Jul 2024Jan 2025Jul 2025Jan 202627
|

Published

2018-12-07

How to Cite

Antón Sarabia, A., & Hernández Trillo, F. (2018). Internalizando externalidades: El impuesto a la gasolina en Guatemala. The Mexican Journal of Economics and Finance, 14(1), 1–20. https://doi.org/10.21919/remef.v14i1.356

Issue

Section

Research and Review Articles

PlumX detalle de metricas