3 ms·
>Increasing the supply of gasoline will reduce its price This is not an inevitability. The state can and does tax things, and I am suggesting that they should
by mrob 8y ago
>Increasing the supply of gasoline will reduce its price
This is not an inevitability. The state can and does tax things, and I am suggesting that they should tax fossil fuels sufficiently to prevent Jevon's paradox from happening. The correct taxation to prevent the market failure of externalities is not any percentage of the production cost, it's the cost of the harm done. If Jevon's paradox would increase the harm done then tax should increase to prevent this.
- danieltillett 8y agoThere is no need to have some alternative gasoline in order to implement a tax to decrease consumption of gasoline. Just a straight carbon tax would do this. The problem of course has been getting these implemented. We really should keep the topic of what Prometheus wants to do seperate from other things like carbon taxes. I think the best bang for our buck would be to just buy the oil before it is pumped out of the ground and leave it there. The producers would stop fighting us doing something about climate change and the increase in gasoline prices would drive the adoption of carbon neutral energy sources.