Surlethe wrote:
You're repeating what I said but using different words: the squeezed, strapped families will maneuver themselves to become less squeezed and strapped, making society more efficient. And I'm not seeing how soaking the people like you who are rich enough to not change their habits as much doesn't count as a progressive system of taxation.
Ok, let's explore this a little bit then so I understand what you are arguing for. How much would you propose increasing fuel taxes and over what period of time?
If we are going to look at how realistic your social engineering is put some real numbers to it.
And I'm claiming that a Pigovian gas (or more generally, carbon) tax gives almost all of the benefits of energy efficiency regulation and subsidization while increasing government revenue and decreasing the cost to the government (hence to society) of specifying and enforcing regulations and subsidies.
Except that it penalizes economic activity instead of rewarding economic activity that is environmentally friendly. So if you end up suppressing economic activity then your net tax revenues fall and you end up with lower net tax receipts. Subsidies may cost more money upfront but they have the same effect as punitive taxation without any of the economic fallout.
And they spend time and money trying to find loopholes in the regulations, people who want SUVs will try to find loopholes in the regulations, the government has to spend time and money finding the people who are looking for loopholes in the regulation and close the regulation, sometimes the businesses will just say "fuck it" and pay the fines (in which case the legislation hasn't even worked), and so on. And that's not even counting that the automakers (their shareholders) are losing out on the profits. (I know, fuck the rich, but that still counts as a cost to the automakers, their employees, the pensioners who are invested in them, the people who count on the automakers for employment, and so on.)
This is just meandering rhetoric with zero in the way of specifics. It's also a scare tactic that the auto industry loves to use to convince legislators that CAFE standards are a waste of time.
Look what has happened in the last few years as CAFE standards have been raised. We have seen a general push towards more efficient engine technologies (turbocharging, direct-injection) and a move away from larger displacement engines. Weight savings has also become a serious consideration for car makers.
The net effect of this is that cars haven't changed much, but the automakers have been forced into implementing more efficiency in their designs. Granted that there is a lot of low hanging fruit that is being picked right now, but that is EXACTLY THE POINT. They could have built cars this efficient years ago but didn't because no one was forcing them to.
I'd say the current trend in automotive design pretty much puts a bullet into your argument that regulation is ineffective in resolving this issue.
Your chart actually supports my contention that driving habits respond to price changes: miles driven has fallen for more than half a decade. Recall also the second law of demand: if gas prices stay high for an extended period of time -- are expected to stay high -- demand elasticity rises. Meanwhile, to support that the effect of CAFE standards are partially mitigated by people driving further, I need to only remark that no real-world supply of a good is totally inelastic on the scale of decades, which is the relevant timescale for CAFE standards.
You obviously didn't read that chart very carefully. During the energy crisis of the late 70s, gas prices doubled overnight and yet the amount of miles being driven by Americans kept growing at a steady rate.
The only data point you have that suggests gas prices and miles driven are even related is the 2000-2010 period where miles driven leveled off and dropped slightly but it was less than 10% despite increases in fuel prices of 2x. I'd hardly call that a massive achievement for the taxation argument.
Clearly if you want to deter Americans from driving, these statistics show you'd have to REALLY tax the shit out of fuel and artificially raise the price at least another 200%-300%. Is that what you are suggesting?
Of course there are; they need fixing too. I'm not denying that there are secondary effects, I'm claiming that those ripples are also society moving toward a more fuel-efficient, environmentally-friendly configuration.
Those elements of the economy are the way they are because they're not bearing the full consequences of their decisions with regard to carbon emissions, and they're going to change anyway as oil production falls off over the next few decades. Spreading out that change over time -- and requiring that people actually bear the costs of their decisions -- can only make society as a whole better off.
(Edit: forgot to respond to a point.)
I agree, but I disagree that during a period of economic recession that punitive taxation on activities that provide positive economic growth are a good idea. If you really want to do social engineering like this, subsidies and regulation have proven just as effective without any of the economic damage that punitive taxation does. In fact they can even spur greater economic development through investment in new technologies.