Tuesday, November 20, 2007

Gas tax v. tolls

In response to my post about casino gambling subsidizing driving, Andreae comments :

There's another way to fairly spread the cost of driving to all drivers: raising the gas tax.

Andreae is absolutely right. We need to raise the gas tax, to allocate more of the cost of driving to drivers, reducing the driving subsidy.

But, a higher gas tax alone is not enough. We also need tolls and other specific charges (congestion pricing, market-rate meters, &c.) to supplement the gas tax and impose a premium on the least desirable kinds of driving.

Not all driving is equally bad.

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