Rob Stavins' fourth column in his "An Economic Perspective" series from The Environmental Forum deals with the gas tax. Coincidence? Maybe. Strange, but true? Mos' def'.
Here is my favorite excerpt from "A Tale of Two Taxes, A Challenge to the Hill,"
According to the U.S. Department of Energy, a 50-cent gas tax increase could eventually reduce gasoline consumption by 10 to 15 percent, reduce oil imports by perhaps 500,000 barrels per day, and generate about $40 billion per year in revenue. Furthermore, this approach would be far more effective than ongoing proposals to increase the Corporate Average Fuel Economy standards, which affect only new cars (not trucks or other vehicles) and lead to serious safety problems by encouraging automakers to produce lighter vehicles. Remember that a major effect of CAFE standards has been to accelerate the shift from cars to SUVs and light trucks (so that overall fuel efficiency of new vehicles sold is no better than it was a decade ago, despite the great strides that have taken place in fuel efficiency technologies).
See our five most recent post for more info on the gas tax, CAFE standards, subsidies for cleaner cars, etc. We'll change the subject when Congress passes a higher gas tax and the President signs it (i.e., never). Sigh.
Update: underlined word
