Alternative systems for calculating an initial duty on passenger cars

The purpose of this project has been to ascertain whether alternative types of initial duties on passenger cars can give economic, environmental and/or safety benefits in relation to the present system. We found that it is possible to design a duty system with less progression than the present one and obtain some economical benefits and less negative externalities. The economic benefit increases if we aloud the income from the tax system to decrease. However, the negative consequences on the environment will increase somewhat. A unitary duty on all new cars will decrease the economic benefits compared to the present system.