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0 pointsjlj5y ago0 comments

Gas taxes set a floor for how low prices can go. They'll probably increase as gas motor cars are phased out before the process ever sink too low.

In Washington, US, they increased the registration fee for electrics to make up for the shortfall in gas taxes that pay for road wear, congestion, etc. So that's already happening.

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bluGill5y ago

The demand side is where it gets tricky. If there are only a few gas stations in your state it doesn't matter that the list price if oil is cheap. Gas stations will tear out their pumps as demand drops.

99_005y ago

>They'll probably increase as gas motor cars are phased out before the process ever sink too low.

Why?

jljOP5y ago

Increased gas taxes would drive behavior change towards electrics. Similar to tobacco and alcohol taxes to discourage their use.

I don't see diesel going away so soon though because of industrial, agriculture, and military use. It will probably be taxed differently according to it's use. In fact it already is taxed differently in the US for home heating, vehicle, and aviation use.

Ericson23145y ago

Because cars still have externalities, electrified or not. One just hopes that also increased thee gas tax too so as not to subsidize the ICE cars.

99_005y ago

If it's about externalities then there is a ceiling on the taxes. Because combination isn't infinitely bad.

If it's about revenue, taxing combustion engines gets less attractive the smaller the market becomes especially if it's easy to switch.

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0 pointsjlj5y ago0 comments

Gas taxes set a floor for how low prices can go. They'll probably increase as gas motor cars are phased out before the process ever sink too low.

In Washington, US, they increased the registration fee for electrics to make up for the shortfall in gas taxes that pay for road wear, congestion, etc. So that's already happening.

0 comments

bluGill5y ago

99_005y ago

>They'll probably increase as gas motor cars are phased out before the process ever sink too low.

Why?

jljOP5y ago

Increased gas taxes would drive behavior change towards electrics. Similar to tobacco and alcohol taxes to discourage their use.

Ericson23145y ago

Because cars still have externalities, electrified or not. One just hopes that also increased thee gas tax too so as not to subsidize the ICE cars.

99_005y ago

If it's about externalities then there is a ceiling on the taxes. Because combination isn't infinitely bad.

If it's about revenue, taxing combustion engines gets less attractive the smaller the market becomes especially if it's easy to switch.

1 more reply

j / k navigate · click thread line to collapse