The 62nd Xi Xian Forum on "Income Distribution and Modern Finance", sponsored by the Zhongnan University of Economics and Law's Center for International Cooperation and Disciplinary Innovation of Income Distribution and Public Finance and the School of Public Finance and Taxation, was successfully held on October 29, 2024, in Wenqin Building's Conference Room 119. As the keynote speaker at the 62nd Xi Xian Forum, Professor Jonathan Hamilton from the University of Florida delivered a keynote speech entitled "Regulating Externalities in Automobile Transportation". The event, moderated by Gao Sihan, a researcher at the Center for International Cooperation and Disciplinary Innovation of Income Distribution and Public Finance, attracted over 20 attendees, including Yan Weibo, Associate Professor of the School of Public Finance and Taxation, as well as researchers Zou Wei, Wan Qian, and Tao Dongjie.
Professor Hamilton first introduced the policy development of the federal government of the United States regarding the amount and scope of the automobile fuel tax since 1932. He took Florida and Nevada as examples to illustrate inter-state policies outside of the federal policy and compared and analyzed the differences in automobile fuel taxation policies at the international level by referencing countries (or regions) such as China, the United Kingdom, and Russia. Subsequently, Professor Hamilton elaborated on the negative externalities brought about by automobile travel, specifying that although the automobile fuel tax levied by the federal government of the United States is used for road construction and maintenance, it is overall insufficient to cover the costs incurred. Additionally, the air pollution caused by automobile travel is also worthy of attention. With the gradual tightening of environmental protection policies in the United States, automobile manufacturers are forced to accelerate green technology upgrading and other initiatives. In this regard, Professor Hamilton stressed that blind regulation and tightening may eventually be counterproductive, so effective incentive mechanisms should also attract the government's attention. Moreover, the reduction in fuel economy due to taxation can indeed contribute to the decline in the use of conventional automobiles. Nevertheless, the purchase of environmentally friendly automobiles requires more capital input than that of conventional automobiles, thus objectively "encouraging" consumers to retain conventional automobiles (as the environmentally friendly automobile standards and policies do not apply to conventional automobiles) or consumers tend to enhance the utilization rate of environmentally friendly automobiles. This runs counter to the original intent of the government policy to a certain extent. In addition, road congestion is also a replica of the "tragedy of the commons" in the actual use of automobiles. Strategies such as "dynamic pricing" can assist in solving this problem. Finally, Professor Hamilton had in-depth exchanges with the teachers and students regarding realistic issues such as the oversupply of costly parking spaces caused by "free parking".
Professor Hamilton not only delivered a wonderful speech to the teachers and students but also triggered their in-depth thinking on the externalities of automobile transportation as well as the regulation and management of such externalities. During the discussion, the teachers and students actively participated, engaging in positive exchanges on practical issues such as how to effectively regulate and manage the negative externalities associated with automobile usage, along with corresponding strategies.
Guest Profile
Jonathan Hamilton, Ph.D. in Economics, serves as a Professor of Economics at the University of Florida. He received a bachelor's degree in economics from Yale University in 1976 and a doctorate in economics from Massachusetts Institute of Technology in 1982. Professor Hamilton has an extensive body of work, focusing on public economics, game theory, location theory, and spatial competition. He holds multiple positions in academia, having served as the Chair of the Department of Economics at the University of Florida and as the President of the Southern Economic Association, where he is an important member. He is also an editor and advisor for several SSCI journals, and he is currently appointed as the "Wenlan Scholar Chair Professor" at Zhongnan University of Economics and Law.