The government is consulting on a zero emission mandate that would phase out sales of new polluting diesel lorries by 2040. Critics argue the upfront costs of switching could push up consumer prices at a time of economic uncertainty.

This briefing examines that claim, comparing the inflationary impact of the proposed mandate with the risk of continued reliance on diesel, which exposes our economy to geopolitical fossil fuel shocks. Our analysis finds the mandate would be disinflationary overall, instead reducing haulage costs by seven per cent between 2027 and 2040.

Authors
George James, Amira Jamal and Nick Davies

For more information, contact:
George James