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The pricing should penalize over-consumption. Let's say the first 10 gallons of gas per week are taxed at a certain rate, the next 10 gallons a higher rate and
by chillwaves 7y ago
The pricing should penalize over-consumption. Let's say the first 10 gallons of gas per week are taxed at a certain rate, the next 10 gallons a higher rate and so forth.
- new2628 7y agoWhy the downvotes, this is an insightful (if inconvenient to some) point.
- pessimizer 7y agoWhy do you find the point insightful? A defense will work better than a lament.
- chillwaves 7y agoThink of it as a subsidiary for the poor. Market forces have not been responsive to creating a sustainable planet, while we also have to recognize the necessities for life/production in society. The cost increases at a higher rate for those who go beyond the basic needs. Secondly to incentivize less consumption.
- deleted 7y ago[deleted]
- mruts 7y agoOr we could like, have the market decide? What you’re saying violates the law of one price and doesn’t make any sense.
- danans 7y agoExcept that's already how natural gas and electricity are priced.
- mruts 7y agoAnd you think that’s related to a free market?
- danans 7y agoNo. You're starting with the assumption that the completely free market is the best way to achieve our societal objectives around energy production, distribution, and consumption. I disagree, saying that there are other better models than the completely free market, that still employ free market elements, including tiered and time of use pricing. But that's probably because we believe in different societal objectives on this subject.
- cortesoft 7y agoThe market doesn't care about fairness, though, and we do. We want everyone to be able to afford enough gas to get around, but if we price it cheaply enough to do that, large consumers are going to use too much and damage the environment. If we place larger taxes on the fuel to price in the externality of environmental damage, we price poorer people out of the market for gas.
- danans 7y agoWhat you are describing is tiered energy pricing. This is already done for natural gas and electricity in many areas. The tiered pricing happens because energy utilities are incentivized via regulation to reduce consumption after a certain point. No such incentive structure exists for the gasoline market, and absent a true carbon tax, the remaining way to achieve conservation of gasoline is to push forward alternatives to gasoline powered vehicles.
- doubleunplussed 7y agoProgressive taxation of income/wealth would seem to have the same effect, but for everything you consume. No need to tax the goods if you can tax the income first.