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Trying to convert these abstract $ per ton numbers into something more concrete... 1 gallon of gasoline produces 20lbs of CO2. 1 Ton of CO2 sequestration costs

by jmpman 7y ago

Trying to convert these abstract $ per ton numbers into something more concrete... 1 gallon of gasoline produces 20lbs of CO2. 1 Ton of CO2 sequestration costs $150 (there’s a range in the article but that’s a good target). If we had to pay a tax on each gallon of gas for this sequestration, it would be $1.50/gallon. That’s a little steep, and would have a serious impact to the short term economy. $0.50/gallon is likely more palatable.

the8472 7y ago
> it would be $1.50/gallon That translates to 0.35€/L, which wouldn't even be half of the taxes already levied on gasoline in many european countries. If it were phased in over time it would hopefully be another incentive for the uptake of electric cars.
gizmo686 7y ago
According to Wikipedia [0]. fuel taxes on the order of $6/gallon exist in some countries. I don't feel like working through all the countries to normalize the units; but the US tax is comically low by comparison. In many countries, your estimated cost is far below what they already pas in gas-specific taxes (although some of that tax might be for non CO2 issues) [0] https://en.wikipedia.org/wiki/Fuel_tax#Tax_rates https://en.wikipedia.org/wiki/Fuel_tax#Tax_rates
thatfrenchguy 7y ago
We should probably just tax at $1.5 a gallon right now just to get the demand down ;-). There’s a reason why cars consume less in continental Europe and that’s not just because people there are smarter.
mikeash 7y ago
Another way to look at it: burning a gallon of gasoline does damage which costs $1.50 to fix, but we allow gasoline buyers to pass that cost on to the rest of the world rather than making them pay for their own mess.
FrojoS 7y ago
I assume this is the CO2 content of one gallon but not the CO2 footprint of producing the fuel and getting it into the tank.
- hollerith 7y ago
  The carbon tax would be applied to the fuel used by the tanker truck that moves the fuel from the refinery to the gas station, too. To estimate how much that would increase the price at the pump, I would rely on estimates of how much fuel a tanker truck can carry, how many miles per gallon the truck gets, and the average distance from refinery to gas station -- which I am too lazy to try to look up.
  - FrojoS 7y ago
    The energy required to extract the oil from the ground (especially in case of fracking and oil sands) and the refining into gasoline is much larger than what is needed for transporting the gasoline to the pump.
AnthonyMouse 7y ago
> If we had to pay a tax on each gallon of gas for this sequestration, it would be $1.50/gallon. That’s a little steep, and would have a serious impact to the short term economy. The simple answer for preventing the economic damage is to return the money to everyone as a dividend. Then the average person pays $1000/year in carbon tax and receives a $1000/year dividend, which cancels out. On average. But if you reduce your carbon footprint to below average then you get more than you pay. (This also helps the poor because they already burn less carbon on average but would receive the same dividend.)

by jmpman 7y ago

the8472 7y ago

> it would be $1.50/gallon That translates to 0.35€/L, which wouldn't even be half of the taxes already levied on gasoline in many european countries. If it were phased in over time it would hopefully be another incentive for the uptake of electric cars.

gizmo686 7y ago

According to Wikipedia [0]. fuel taxes on the order of $6/gallon exist in some countries. I don't feel like working through all the countries to normalize the units; but the US tax is comically low by comparison. In many countries, your estimated cost is far below what they already pas in gas-specific taxes (although some of that tax might be for non CO2 issues) [0] https://en.wikipedia.org/wiki/Fuel_tax#Tax_rates https://en.wikipedia.org/wiki/Fuel_tax#Tax_rates

thatfrenchguy 7y ago

We should probably just tax at $1.5 a gallon right now just to get the demand down ;-). There’s a reason why cars consume less in continental Europe and that’s not just because people there are smarter.

mikeash 7y ago

Another way to look at it: burning a gallon of gasoline does damage which costs $1.50 to fix, but we allow gasoline buyers to pass that cost on to the rest of the world rather than making them pay for their own mess.

FrojoS 7y ago

I assume this is the CO2 content of one gallon but not the CO2 footprint of producing the fuel and getting it into the tank.

hollerith 7y ago
The carbon tax would be applied to the fuel used by the tanker truck that moves the fuel from the refinery to the gas station, too. To estimate how much that would increase the price at the pump, I would rely on estimates of how much fuel a tanker truck can carry, how many miles per gallon the truck gets, and the average distance from refinery to gas station -- which I am too lazy to try to look up.
- FrojoS 7y ago
  The energy required to extract the oil from the ground (especially in case of fracking and oil sands) and the refining into gasoline is much larger than what is needed for transporting the gasoline to the pump.

AnthonyMouse 7y ago

> If we had to pay a tax on each gallon of gas for this sequestration, it would be $1.50/gallon. That’s a little steep, and would have a serious impact to the short term economy. The simple answer for preventing the economic damage is to return the money to everyone as a dividend. Then the average person pays $1000/year in carbon tax and receives a $1000/year dividend, which cancels out. On average. But if you reduce your carbon footprint to below average then you get more than you pay. (This also helps the poor because they already burn less carbon on average but would receive the same dividend.)