Gas taxes are often considered regressive, impacting lower-income households more than higher-income households. However, this document discusses several factors that may make gas taxes less regressive. When factors like adaptation over time, use of electric vehicles, tax reform proposals, and indirect effects on public transportation are taken into account, gas taxes may actually be progressive or proportional rather than regressive. The document also compares gas tax incidence in several countries like the US, South Africa, Mexico, and India.

1. Gas taxes: Progressive or Regressive Thomas Sterner Work In progress Not for citation

3. Transport Fuel Use in OECD Gtons fuel (and ~C*(12/14)) Real UK prices US prices Fuel use 1,13 0,72 1,47 -36% +30%

6. Suits index

8. Tax Reform  more possibilities

9. S Africa

10. Public transport expenditures as share of total household expenditures

11. Private transport expenditures as share of total household expenditures

12. Transport fuel expenditures as share of total household expenditures

13. Mexico

14. Including use of diesel in PubTr Roughly 25% of bus fare is diesel.. Add shares from private fuel  Tax in Mexico proportional

15. Gasoline taxes Regressive in INDIA? Table1: Budget shares of fuels (Transport + Cooking and Lighting Fuels)

16. India contd.

17. Taking indirect effects into account

18. Urban