498 The case for a levy on used vehicle export: a feasibility study applied to the case of Italy

This thesis critically examines the international trade in used vehicles, focusing on its negative externalities and proposing a Used Vehicles Export Levy (UVEL) in Italy to mitigate these impacts. The indispensability of transport is highlighted by the global presence of 1.31 billion light-duty vehicles (LDVs), a figure expected to double by 2050. This growth, although beneficial for mobility, poses significant environmental and health challenges. The transport sector, especially road transport, is a major contributor to greenhouse gas emissions, with LDVs and heavy-duty vehicles (HDVs) being significant contributors. Furthermore, road accidents disproportionately affect low- and middle-income countries (LMICs), emphasizing the need for safer vehicle standards. The study reveals a disparity in vehicle ownership: high-income countries (HICs) have access to cleaner, safer vehicles, while LMICs often receive older, more polluting used vehicles. Focusing on Italy, a major exporter of used vehicles in the European Union, the thesis proposes the implementation of UVEL to address the environmental and safety issues stemming from this trade. Methodologically, the research includes an extensive analysis of the used vehicle trade's dynamics and simulates the effects of UVEL in three scenarios: low, medium, and high levy. It also provides a quantitative assessment of used vehicle brokers in Italy, offering insights into this sector's operations. The thesis comprises three chapters: The first situates the topic within the realms of international trade, environmental economics, and public health, justifying the levy as a remedy for trade externalities. The second chapter focuses on the Italian case, evaluating the feasibility of UVEL. The final chapter presents qualitative research on used vehicle brokers in Italy, revealing the market's largely informal and semi-legal nature. In conclusion, the thesis not only deepens understanding of the international used vehicle trade but also suggests practical policy measures, like UVEL, to alleviate its adverse impacts. The findings establish a foundation for further research and policy discussions aimed at reducing the negative externalities of this trade, emphasizing the need for a more equitable and sustainable approach to global vehicle distribution.