Tax carbon, by raising gas tax. Let the market figure out the details. This lets the market optimize for efficiency instead of optimize towards defeating the entire point of regulation.
hmmmm, this feels wrong, but off the top of my head i don’t have many critics. but, like, what if the car makers just make very inefficient, but also very cheap cars? won’t people buy that instead?
Depends on how high you make the tax, lower priced car might offset that.
And gas tax also disproportionately affect the poorer population, for many of them cars are mandatory because of commuting, etc. And those who are well-off might just not care about the tax.
oh i didn’t even know there is a word for this class of taxes, thanks. i guess that’s why it felt intuitively wrong to me even though i can’t quite put my finger on it. maybe i just have a general aversion towards Pigouvian taxes.
Tax carbon, by raising gas tax. Let the market figure out the details. This lets the market optimize for efficiency instead of optimize towards defeating the entire point of regulation.
hmmmm, this feels wrong, but off the top of my head i don’t have many critics. but, like, what if the car makers just make very inefficient, but also very cheap cars? won’t people buy that instead?
Very inefficient cars would burn a ton of fuel and then consumers would be paying a fortune in fuel taxes.
Depends on how high you make the tax, lower priced car might offset that.
And gas tax also disproportionately affect the poorer population, for many of them cars are mandatory because of commuting, etc. And those who are well-off might just not care about the tax.
That’s the case with all Pigouvian taxes.
oh i didn’t even know there is a word for this class of taxes, thanks. i guess that’s why it felt intuitively wrong to me even though i can’t quite put my finger on it. maybe i just have a general aversion towards Pigouvian taxes.