Could Higher Gas Taxes Be A Better Way To Conserve Than Federal Economy Rules?

Could Higher Gas Taxes Be A Better Way To Conserve Than Federal Economy Rules?

With the announcement of final rules for corporate average fuel efficiency of 54.5 mpg by 2025, the NHTSA and EPA have done two things.

The agencies have given carmakers both a major technological challenge--double the effective gas mileage of your vehicles in 12 years--and something they have long wanted: regulatory certainty.

If the definition of a good compromise is that no one is entirely happy with it, then perhaps the new, stiffer CAFE requirements are good indeed.

But many economists, industry executives, and  policy wonks feel that stiffer gas-mileage rules are not the best way to reduce gasoline consumption.


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NorthstarNorthstar - 9/13/2012 4:15:58 PM
+1 Boost
Interesting question. A quick check of high gasoline tax countries like the UK and Germany show that annual usage per vehicle is slightly less than 10,000 miles per year in Germany while the US and UK are about 12,000 miles per year. UK is actually higher than US. It could be argued that taxes do not stop driving but may incent smaller cars. Bigger question is how does the USA support roads etc. with less gasoline used. Higher gas taxes would seem inevitable anyway but don't fairly charge electric vehicles for their usage of the infrastructure.


freeagentfreeagent - 9/13/2012 8:34:55 PM
-1 Boost
yes, raising gas taxes allows the market to shake all this out, will drive reduced reliance on the whack jobs in the middle east, and generate revenues. the trouble is that both democrats and republicans will oppose it (for different reasons, however). it wont happen.


MBCLS07MBCLS07 - 9/14/2012 1:41:09 AM
+2 Boost
Under Obama, median income in the US is down to 1995 levels while unemployment is rampant forcing people to take any job they can get, even it means a longer commute. Within this environment there are ignorant fools who are actually advocating even higher taxes to force people to conserve fuel. Unbelievable! How out of touch and economically illiterate can people get?


quizzquizz - 9/14/2012 9:06:37 AM
0 Boost
The problem isn't fuel conservation, it's lack of public transportation. Poor people should not be driving (unless it's an integral part of their business, like construction, delivery, transport, etc.) to work, but taking mass transit (faster, safer, cheaper). You don't see any people in NYC or Boston complaining that they would rather drive their cars.

If raising taxes funded better public transportation, the money would flow from gasoline and car maintenance to bus fares and train tickets. Poor people definitely benefit from not having to own a car (DMV taxes, repairs, gasoline, smog checks, etc.). But in Southern Cal mass transit is not available so the poor have no choice but to drive.


truckmantruckman - 9/16/2012 4:36:26 AM
+1 Boost
The higher gas tax would just punish the working poor, look at the F-150 with the ecoboost engine, not a gas champ when compared to small cars but for trucks this is better than any diesel truck out there, technology is here now to improve the mileage.


mini22mini22 - 9/16/2012 9:21:04 PM
+1 Boost
Without public transportation in many states the working poor are already being punished. The problem is most states do not have the money to afford adequete public transportation. The gas tax should be geared towards that development. That would help the poor from having to drive their own vehicles. For the rest of us higher gas taxes would probably encourage the purchase and use of more fuel efficient vehicles. The only issue is for people that need a truck for their work or type of work.There must be some sort of a financial allowance so that busineses due not have to pass on the transportation cost of goods to the consumer. There may have to be government intervention on that issue to curb potential future inflation.


HighDesertHighDesert - 9/18/2012 1:13:28 AM
+1 Boost
The only way to get industry to comply is to impose high fuel costs on gasoline. But, consistent with Europe, favor the more efficient fuel, diesel, with reduced cost. Might be brutal, but this will permit the next generations of drivers to have just that, the opportunity to drive.


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