Last word on CAFE

Ryan Avent makes the case against CAFE standards, but it reads to me much more like it ought be a case for a combination of CAFE standards and a gas tax. I think the debate we've been having--such as we've been having it--has unnecessarily assumed the either/or stance that's usually championed by people who really want neither, and there's really no reason for that.

Anyhow. What Matt says here is certainly correct (except for that part where he says I speak up for CAFE as opposed to a gas tax) but it is also yet more evidence that we should work towards both. CAFE will come first for political reasons anyhow, but I think that's actually a good thing policy-wise, because the level of the gas tax--the rate at which it will effectively reduce the number of miles people drive--will have to systematically increase as time goes on and average fuel efficiency creeps northward.

Comments

But what about his point that, by making driving cheaper, CAFE actually makes a gas tax less effective at changing behavior? Don't the two measures sort of work at cross-purposes?

Posted by: Dan Miller on October 14, 2007 12:14 PM

Yes, that's why I say the gas tax has to be designed to factor in rising efficiency, as I noted in this post.

Posted by: Brian on October 15, 2007 01:33 AM

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