I can see how 2 can be gamed by car makers, but I don’t know how I would fix it. Seems intuitive larger cars will use more fuel, e.g. can’t use the same standards on 18 wheelers and sedans.
Are there good alternatives? Is my intuition dead wrong
The issue is they used to base it on vehicle classification AND size, but the manufacturers just classified everything as a light truck to getbaround hlthe regulations. So they got rid of that loophole, but now a Toyota Corolla has less-strict fuel economy standards than an old-style Ford Ranger. So they essentially outlawed small trucks.
It’s not just trucks, either. The small cargo van no longer exists. The Ford Transit Connect, Ram Promaster City, and Nissan NV200 were all discontinued around 2021 because they can no longer meet CAFE regulations at that size.
The Gord Maverick is a small truck, but it comes standard as a hybrid and has very little towing or hauling capacity as a result.
Tax carbon, by raising gas tax. Let the market figure out the details. This lets the market optimize for efficiency instead of optimize towards defeating the entire point of regulation.
hmmmm, this feels wrong, but off the top of my head i don’t have many critics. but, like, what if the car makers just make very inefficient, but also very cheap cars? won’t people buy that instead?
Depends on how high you make the tax, lower priced car might offset that.
And gas tax also disproportionately affect the poorer population, for many of them cars are mandatory because of commuting, etc. And those who are well-off might just not care about the tax.
Shift the tax to vehicle weight with a separate scale for electric cars but don’t have exceptions for commercial vehicles that could be used as private vehicles. For example, exempt cement trucks but not f350 dualies. It sucks that anyone with a legit business need for a f350 will get hit but that’ll just be the cost of doing business.
oh i didn’t even know there is a word for this class of taxes, thanks. i guess that’s why it felt intuitively wrong to me even though i can’t quite put my finger on it. maybe i just have a general aversion towards Pigouvian taxes.
I can see how 2 can be gamed by car makers, but I don’t know how I would fix it. Seems intuitive larger cars will use more fuel, e.g. can’t use the same standards on 18 wheelers and sedans.
Are there good alternatives? Is my intuition dead wrong
The issue is they used to base it on vehicle classification AND size, but the manufacturers just classified everything as a light truck to getbaround hlthe regulations. So they got rid of that loophole, but now a Toyota Corolla has less-strict fuel economy standards than an old-style Ford Ranger. So they essentially outlawed small trucks.
It’s not just trucks, either. The small cargo van no longer exists. The Ford Transit Connect, Ram Promaster City, and Nissan NV200 were all discontinued around 2021 because they can no longer meet CAFE regulations at that size.
The Gord Maverick is a small truck, but it comes standard as a hybrid and has very little towing or hauling capacity as a result.
Tax carbon, by raising gas tax. Let the market figure out the details. This lets the market optimize for efficiency instead of optimize towards defeating the entire point of regulation.
hmmmm, this feels wrong, but off the top of my head i don’t have many critics. but, like, what if the car makers just make very inefficient, but also very cheap cars? won’t people buy that instead?
Very inefficient cars would burn a ton of fuel and then consumers would be paying a fortune in fuel taxes.
Depends on how high you make the tax, lower priced car might offset that.
And gas tax also disproportionately affect the poorer population, for many of them cars are mandatory because of commuting, etc. And those who are well-off might just not care about the tax.
Shift the tax to vehicle weight with a separate scale for electric cars but don’t have exceptions for commercial vehicles that could be used as private vehicles. For example, exempt cement trucks but not f350 dualies. It sucks that anyone with a legit business need for a f350 will get hit but that’ll just be the cost of doing business.
That’s the case with all Pigouvian taxes.
oh i didn’t even know there is a word for this class of taxes, thanks. i guess that’s why it felt intuitively wrong to me even though i can’t quite put my finger on it. maybe i just have a general aversion towards Pigouvian taxes.