Argument: A carbon tax is more economical than regulations


Congressional Budget Office. “Fuel Economy Standards Versus a Gasoline Tax”. March 9, 2004 – “This issue brief focuses on the economic costs of CAFE standards and compares them with the costs of a gasoline tax that would reduce gasoline consumption by the same amount. The Congressional Budget Office (CBO) estimates that a 10 percent reduction in gasoline consumption could be achieved at a lower cost by an increase in the gasoline tax than by an increase in CAFE standards.”

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