LOW GAS PRICES FINAL BLOW TO CARBON TAX STRATEGY
Today’s low gas prices (the national average this week is $2.69 a gallon) are another nail in the coffin for the climate movement’s longstanding strategy of reducing gasoline use through imposition of higher motor fuel taxes. As discussed in an earlier blog post, higher federal gas taxes to disincentivize gas consumption are completely off the table until a new Congress arrives in 2017, and probably long after that. And even if additional gas taxes were to be miraculously enacted, their effects would be masked by highly volatile gas prices that are presently more than $1 a gallon under their recent averages.
For the next several years, consumers’ rejection of gasoline will not be based on an economic calculation based on price signals, but rather a choice based on their desire not to be throwing 20+ lbs of dangerous garbage into the air on a daily basis.