All Right! Correcting Pigovian Taxes!
Three possible externalities associated with driving are the following:In addition to answering the "so, ballpark, how much are we talking about per gallon?" question for carbon taxes, the post also suggests that the high-mileage/low-density greater metropolitan Smyrna motoring lifestyle may not be so inefficient compared to the low-mileage/slightly-higher-density Waltham one.
If you had to guess, which of those three considerations provides the strongest justification for a bigger tax on gasoline?
- My driving increases congestion for other drivers;
- I might crash into other cars or pedestrians;
- My driving contributes to global warming.
(Of course, certain Bronxians have us all beat on the efficiency scale....)