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A carbon tax on gasoline? It's worth a look.(Opinion)(Brief article)
- Article from:
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Automotive News
- Article date:
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March 5, 2007
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Copyright informationCOPYRIGHT 2007 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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As a rule, using taxation to alter consumer behavior is bad policy that smacks of social engineering. But given the concerns about CO2 contributing to climate change and the need for the nation to reduce its dependence on imported oil, this is an auspicious time to consider a so-called carbon tax.
The theory behind a carbon tax is based on the concept of supply and demand: If you make something more expensive, people will buy less of it. In this case, the something is fuel that creates CO2 as a byproduct.
As a result, consumers will demand and buy vehicles that are more fuel efficient.
Under a proposal by economist Robert Shapiro, a tax would be based on the ...