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Personal transport decisions as strongly influenced by cost

Personal transport decisions are strongly influenced by cost, which makes financial penalties and incentives the instruments of choice. As consumers buy more and bigger cars, countries are adopting a mix of measures to encourage sustainable transport choices. Taxes and charges, including petrol taxes, differential vehicle taxes and congestion charges, can be effective particularly when combined with investments in public transport Norway and Denmark are adding charges to car prices based on the level of vehicle CO2 emissions and at the same time giving tax deductions to cars running on alternative fuels. Canada introduced a transport package consisting of discounts on fuel-efficient vehicles, green levies on “gasguzzling” vehicles, increased budgets for vehicle disposal programmes, and incentives to remove older vehicles from roads. These tools may also be combined with congestion charges to influence personal transport choices and manage traffic in urban areas, as in London and Stockholm.