From the email:
Sky-High California Gas Prices Have a Green Additive
by: Allysia Finley
Jul 18, 2015
Click here to view the full article on WSJ.comTOPICS: Environmental Regulation
SUMMARY: The national average is $2.76 a gallon, while Golden State drivers pay $3.88. Eco-virtue is expensive.
CLASSROOM APPLICATION: Students can evaluate whether California's environmental regulation of gasoline and electricity and also gasoline taxes are driving up the state's gasoline prices. They can also discuss whether these regulations and taxes promote economic efficiency (by addressing the negative externality of gasoline).
QUESTIONS:
1. (Introductory) What is the effect of California's gasoline tax on the price of gasoline in the state?
2. (Advanced) What is the effect of California's regulation of carbon emissions on the price of gasoline in the state? Analyze the regulation of gasoline and the regulation of electricity.
3. (Advanced) Why [are] California gasoline prices compared to those of other states particularly hard hit when refinery disasters occur?Reviewed By: James Dearden, Lehigh University
