Commuting, Transport Tax Reform and the Labour Market: Employer-paid Parking and the Relative Efficiency of Revenue Recycling Instruments KU Leuven University of Antwerp
In this paper, the welfare effects of a budget-neutral increase in taxes on car commuters are studied in a model that takes into account the presence of employer-paid parking at the workplace. It is found that the presence of employer-paid parking substantially increases the welfare effect of such a tax reform, independent of the use of the revenues: congestion taxes not only correct congestion externalities, they also reduce the inefficiency ...