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MIT study finds fuel economy standards are 6-14 times less cost effective than fuel tax for reducing gasoline use

Green Car Congress

In a study published in the journal Energy Economics , MIT researchers have found that a fuel economy standard is at least six to fourteen times less cost effective than a fuel tax when targeting an identical reduction in cumulative gasoline use (20% by 2050). Paltsev, M. Babiker, J.M. 2012.09.001.

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President Biden calls on Congress, States for fuel tax holiday; increase in refinery capacity

Green Car Congress

President Biden called on Congress to suspend the federal gas tax for the next 90 days, through the busy summer driving season—18 cents per gallon for gasoline and 24 cents per gallon for diesel. He also called on states to suspend their state gas taxes as well or to find other ways to deliver some relief.

Congress 259
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OECD: governments should make better use of energy taxation to address climate change; “meaningful” increases limited to road sector

Green Car Congress

Tax rates were below the low-end estimate of climate costs (EUR 30/tCO 2 ) for 97% of emissions. The report found that the share of emissions taxed above climate costs increased from 46% in 2012 to 50% in 2015, and rates exceed €50 per tCO 2 for 47% of emissions in 2015, compared to 37% in 2012. of emissions.

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Study finds behavior-influencing policies remain critical for mass market success of low-carbon vehicles

Green Car Congress

Here, we develop state-of-the-art representations of consumer preferences in multiple global energy-economy models, specifically focusing on the non-financial preferences of individuals. More than 90% of such vehicles are powered by internal combustion engines burning oil-derived fuels. Note the different scaling used in the graphs.

Carbon 231
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Belfer Center Study Concludes Reducing Car and Truck GHG Emissions Will Require Substantially Higher Fuel Prices; Income Tax Credits for Advanced Alt Fuel Vehicles Are Essentially Ineffective at Reducing Sector Emissions

Green Car Congress

Economy-wide CO 2 prices of $30-60/t CO 2 are too weak on their own to motivate significant reductions in CO 2 emissions from transportation. The economy-wide CO 2 prices applied increase the cost of driving only marginally with respect to the business-as-usual case. —Morrow et al.

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MIT Energy Initiative report on transforming the US transportation system by 2050 to address climate challenges

Green Car Congress

Overall, we have substantial opportunities for reducing environmental and climate impacts from light-duty road vehicles. Average on-road fuel consumptions (tank to wheels) of the different propulsion systems in an average light-duty vehicle: 2010, 2030, and 2050. Includes vehicle weight reduction: at constant acceleration capability.

MIT 150
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We Need More Than Just Electric Vehicles

Cars That Think

The total cost of purchasing and driving one—the cost of ownership—has fallen nearly to parity with a typical gasoline-fueled car. Most automotive manufacturers say they plan to use renewable energy in the future, but for now, most battery production relies on electric grids largely powered by fossil fuels.