Thursday, October 12, 2006

Support for a hike in gasoline taxes

Raising the gas tax or, quelle horreur, introducing a carbon tax has in the past been dismissed as a radical idea from anti-capitalist forces on the political left.

Nothing could be further from the truth. As a recent NY Times story states, economists from all over the political spectrum are now touting the benefits of a gasoline tax. The list includes Alan Greenspan, former chairman of the Federal Reserve (doesn't "the Fed" sound like it is coming soon to a theatre near you, a maverick economist metes out his own form of justice, no, no, not another point in the prime rate).

Harvard economist Greg Mankiw has created a virtual "Pigou Club", named after the economist who first proposed using taxes to correct imperfections in the market, for economists and the like who support increasing gasoline taxes. Check out the diverse list of members.

3 comments:

t said...

The first thought that comes regardless of your pro or con position on fuel taxes.

The 2 countries on the bottom of the graph are together about 20 times the size of all countries above. Development of public transit to the level it is in above countries would result in huge spike of GG emissions.

On another hand I would like NDP, the Block, and Liberals run on 500% fossil fuel tax increace in Canada. They would be elliminated from political life in Canada even with general antiBushism in Canada. North American Elite and trust fund social activists can have their opinion on that, but any try of implementation will get them in position looking for cover in China

tim said...

So much for a global warming:
it was predicted that this winter will be warmer or mild. Tell this to people in Buffalo and Niagara escarpment.

So, here is my spin on this winter:
It is going to be longer and colder than usual. It would take too long for me to explain

Simon Donner said...

Shipping aside, most people aren't regularly driving across the country and back, but from home to the office.

The winter is expected to be warmer than normal, in part because of the mild El Nino. Long-term seasonal forecasts do have limited accuracy, so I wouldn't place any bets just yet.

The snowstorm in Buffalo had as much to do with the lakes being so warm than the air being so cold. Milder winters are expected to cause more lake effect snows, as the lakes will be warmer in the spring and fall and have less winter ice cover.