Transport Taxation in France. From the Development of Supply to the Management of Demand

There has, for several months, been lively debate in France on the pertinence and effectiveness of national taxation policy. One sector has, however, been largely exempted from these discussions, argues Émile Quinet in this article. This is the transport sector, in which the relevant taxes, though there are many of them, have not been much discussed. Yet, there is much to think about, as Quinet shows here in great detail. The aim of transport taxation in France today is essentially to provide financial resources to adapt transport provision to user demand, whereas other functions could (or should) prevail, such as the pursuit of fairness, but also, and most importantly, the steering of demand so as to combat externalities – pollution, accidents, congestion etc. – for example. After a very thorough review of the state of transport taxation, Émile Quinet points up its highly financial character; he also stresses the lack of effectiveness of price-setting in the transport sector, before examining the possible gains from a positive steering of demand using fiscal instruments. Many obstacles do, of course, remain, in terms of fairness, social acceptability, corporatism and with regard to administrative matters. Yet the situation could change as a result of various factors, such as new information and communications technology, experience gained in other countries and disseminated through the European Union, or a climate favourable to pro-environmental action arising out of the Grenelle environmental summit. This article shows that there is, for once, genuine room for manoeuvre in the transport sector to steer demand and develop policies in tune with the demands of our age, particularly its environmental demands. It would be a pity not to take advantage of these, or to do so without making some effort to educate the public on these matters.