Mexican Media Brands
Study: U.S. Fuel Economy Rules 6X As Costly as Fuel Tax
The gasoline saved by upcoming U.S. fuel economy rules could be achieved for one-sixth and perhaps as little as one-fourteenth the cost by raising gasoline taxes instead, according to researchers at the Massachusetts Institute of Technology.
#economics
Share
The gasoline saved by upcoming U.S. fuel economy rules could be achieved for one-sixth and perhaps as little as one-fourteenth the cost by raising gasoline taxes instead, according to researchers at the Massachusetts Institute of Technology.
Their paper, published in this month's Energy Economics, points out that forcing new cars to deliver better fuel economy has no impact on the 230 million passenger vehicles already on the road in America. The analysis says substituting a higher fuel tax would provide immediate and direct incentive for drivers to reduce their fuel use.
The researchers, led by research scientist Valerie Karplus, suggest a bipartisan effort to increase the federal gasoline tax of 18.4 cents per gallon to 45 cents per gallon. They note that fuel taxes in Germany are 18 times as high as in the U.S.
The researchers estimate that U.S. fuel taxes currently raise about $25 billion per year. They say revenue from higher taxes could be used to improve America's highway infrastructure and even provide financial aid to low-income families help offset higher fuel costs.
RELATED CONTENT
-
GM, Ford Evaluate Possible Economic Slump
General Motors and Ford say they have bolstered their cash reserves in case the trade war between the U.S. and China triggers a global recession.
-
on the Genesis GV60 interior, EV sales in H1, Bentley Bentayga's wood work, Faurecia's advanced manufacturing & more
The strange glowing orb in the Genesis GV60. . .global EV sales in the first half. . .creating wood for the Bentayga interior. . .the importance of material handling at Faurecia. . .lux ATPs. . .fast Porsche. . .fast Lambo. . .the Avalon Hybrid. . .Silverado steel. . .
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.