Jan 262009

Speed Gibson points out that cars don’t guzzle gas, people do. That’s a good argument for a netzero gas tax vs CAFE standards.

Speed says “The market regulates all this just fine, or would if the government would stop interfering.” I don’t completely go along with that, as it doesn’t take care of regulating the external costs of fossil fuel consumption. But a netzero tax would harness market forces to do the parts that markets do best.