Healthy Climate, Healthy Bodies: Optimal Fuel Taxation and Physical Activity

The economics of climate change with endogenous preferences

“…Subsection 2.1 also noted that public health policies can shape preferences to help people make healthier and more environmentally-beneficial choices (Hawkes et al, 2015). The examples of Woodcock et al (2009) and Springmann et al (2016) highlight that significant welfare gains could be achieved by increasing active travel and reducing the fraction of animal-sourced foods, since such changes reduce both emissions and reduce the burden from a wide range of diseases (see also van den Bijgaart et al (2020); Funke et al ( 2022)). Habitual car-driving for short trips or consuming large quantities of red meat beyond dietary requirements is structurally similar to smoking or drink-driving, generating both an "internality" (harm to the individual created by costs on future health) and an "externality" (harm to others).…”

“…for example, explores a scenario with greater active travel (slight increase in the distance walked and double increase in distance cycled), finding that the health gains from physical activity are greater than those from reduced air pollution in both London and Delhi. For a comprehensive review seeMueller et al (2015) andvan den Bijgaart et al (2020) for implications for optimal urban transport policy.…”