By Gould R.F. (ed.)
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However, the subsidy might reduce the price of fuel. Cheaper fuel may induce individuals to drive more. Therefore, driving needs to be discouraged, and a miles tax can achieve that goal. Recently, global positioning system (GPS) technology has fallen dramatically in price, so requiring GPS on all new vehicles can help make a miles tax enforceable. 3. Third example: Mass transit plus tax on solo driving Fewer solo commuters would also result from the implementation of a carbon tax, as the cost of gasoline increases.
In lieu of a carbon tax, subsidizing biofuel blending and taxing vehicle-miles can mimic the same outcomes. The blending subsidy makes it profitable for refiners to substitute away from 100% petroleum-based gasoline. However, the subsidy might reduce the price of fuel. Cheaper fuel may induce individuals to drive more. Therefore, driving needs to be discouraged, and a miles tax can achieve that goal. Recently, global positioning system (GPS) technology has fallen dramatically in price, so requiring GPS on all new vehicles can help make a miles tax enforceable.
STIMULATING LOW-CARBON VEHICLE TECHNOLOGIES – ¤ OECD/ITF 2010 34 – COMBINATIONS OF INSTRUMENTS TO ACHIEVE LOW-CARBON VEHICLE-MILES Figure 3. 5. Disclaimer: The block definitions used by the TEDB in no way reflect the opinion or structure of the OECD. Block definitions: Europe, West: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Latvia, Luxembourg, Malta, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom; and, Europe, East: Belarus, Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, Poland, Romania, Russia, Serbia, Slovakia, Slovenia and Ukraine.