3 ms·

Because you don't pay the carbon cost of the gasoline.

• nullc 5y ago
  Dunno about the WA figures, but California cap-and-trade results in carbon costs increasing fuel prices. A quick internet search suggests that the cost of carbon credits to offset emissions for gas come out to $0.1 per gallon. I'm guessing adding this in wouldn't change the result being discussed.
  • matthewdgreen 5y ago
    The fact that CA is charging $0.1 per gallon does not mean you're actually paying the true carbon cost of the gasoline. You're paying a tax based on an arbitrary cap that was set by politicians, and one that may change dramatically in the future.
    • nullc 5y ago
      $0.1 is the price of for carbon offsets. 1 Gallon gas = 20lbs CO2, and going rate for carbon offsets are $10/ton. Due to how CA cap/trade works I can't directly figure out the marginal cost difference there, though it looks greater than the market offset rate (as you note these rates depend on caps). Obviously I don't think that offset capture the total externality, but if a comparison is to be made some figure is needed. Even our 'green energy' figures don't capture their own substantial carbon footprint entirely.