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The market, not the government, should decide the transition time. If gasoline and diesel fuels have such strong negative externalities, the state should tax th

The market, not the government, should decide the transition time. If gasoline and diesel fuels have such strong negative externalities, the state should tax these fuels until hybrid and electric become compelling alternatives. These top-down, non-market edicts damage the ability to the market to find appropriate resource allocation via the price mechanism and thereby make everyone worse off.

_ph_ 6y ago
The problem with just raising the fuel taxes sky high is that the poorest part of the population is struck the hardest, they can't just buy a new electric car and have no way to avoid the fuel costs.
- missedthecue 6y ago
  Well the "ban cheap cars" method doesn't help the poor either.
  - _ph_ 6y ago
    Electric cars will be cheaper than gasoline cars long before 2030, probably before 2025.
M2Ys4U 6y ago
>The market, not the government, should decide the transition time. No, the market will continue to completely screw the environment unless the government steps in. >If gasoline and diesel fuels have such strong negative externalities, the state should tax these fuels Petrol and diesel are already heavily taxed, at £0.58/L (at current GBP/USD exchange prices that works out at $0.76/L USD, whereas the equivalent tax in the US is $0.05/L). >These top-down, non-market edicts damage the ability to the market to find appropriate resource allocation via the price mechanism and thereby make everyone worse off. Oh the holy market! Can't disrupt the holy market, even when it's destroying the planet.
- quotemstr 6y ago
  > No, the market will continue to completely screw the environment unless the government steps in. What makes you believe that? > Petrol and diesel are already heavily taxed, at £0.58/L But people are still using regular gasoline cars. Why might that be? > Oh the holy market! Can't disrupt the holy market, even when it's destroying the planet. The market is what's given us the modern technological civilization that made the computer you're using to post your comments. Top-down control has always made us worse off in the end.
sp332 6y ago
The government works in cooperation with industry. Putting a timeline on something that's already happening is pretty simple and prevents the prisoner's dilemma problem among competitors. Anyway, the government already controls tons of subsidies and regulations on the fuels and car industries, so it's not like there's a pure market signal to be had here.
bbddg 6y ago
To the market! The cause of, and solution to, all of life's problems!
andylynch 6y ago
The UK is doing this too, in multiple ways. Vehicle excise duty for vehicles 2001 onwards is based on CO₂ emissions. Fuel duty too. And on top of that you have the low emission zones and London and two more cities next year, where you can still drive, but have to pay a (steep) fee if your vehicle isn’t to up to the right standards. Setting a date well in advance is also helpful for production planning, it gives the market some certainty in developing their products for the cutoff, and this has to be done early to be useful.

_ph_ 6y ago

The problem with just raising the fuel taxes sky high is that the poorest part of the population is struck the hardest, they can't just buy a new electric car and have no way to avoid the fuel costs.

missedthecue 6y ago
Well the "ban cheap cars" method doesn't help the poor either.
- _ph_ 6y ago
  Electric cars will be cheaper than gasoline cars long before 2030, probably before 2025.

M2Ys4U 6y ago

>The market, not the government, should decide the transition time. No, the market will continue to completely screw the environment unless the government steps in. >If gasoline and diesel fuels have such strong negative externalities, the state should tax these fuels Petrol and diesel are already heavily taxed, at £0.58/L (at current GBP/USD exchange prices that works out at $0.76/L USD, whereas the equivalent tax in the US is $0.05/L). >These top-down, non-market edicts damage the ability to the market to find appropriate resource allocation via the price mechanism and thereby make everyone worse off. Oh the holy market! Can't disrupt the holy market, even when it's destroying the planet.

quotemstr 6y ago
> No, the market will continue to completely screw the environment unless the government steps in. What makes you believe that? > Petrol and diesel are already heavily taxed, at £0.58/L But people are still using regular gasoline cars. Why might that be? > Oh the holy market! Can't disrupt the holy market, even when it's destroying the planet. The market is what's given us the modern technological civilization that made the computer you're using to post your comments. Top-down control has always made us worse off in the end.

sp332 6y ago

The government works in cooperation with industry. Putting a timeline on something that's already happening is pretty simple and prevents the prisoner's dilemma problem among competitors. Anyway, the government already controls tons of subsidies and regulations on the fuels and car industries, so it's not like there's a pure market signal to be had here.

bbddg 6y ago

To the market! The cause of, and solution to, all of life's problems!

andylynch 6y ago

The UK is doing this too, in multiple ways. Vehicle excise duty for vehicles 2001 onwards is based on CO₂ emissions. Fuel duty too. And on top of that you have the low emission zones and London and two more cities next year, where you can still drive, but have to pay a (steep) fee if your vehicle isn’t to up to the right standards. Setting a date well in advance is also helpful for production planning, it gives the market some certainty in developing their products for the cutoff, and this has to be done early to be useful.