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Sarah E. West

In: 21st Century Economics: A Reference Handbook

Chapter 24: Taxes Versus Standards: Policies for the Reduction of Gasoline Consumption

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Taxes Versus Standards: Policies for the Reduction of Gasoline Consumption
Taxes versus standards: Policies for the reduction of gasoline consumption

Fossil fuel consumption and greenhouse gas emissions from the personal transportation sector promise to be key challenges facing the next generation of policy makers. In 1999, transportation became the largest end-use producer of carbon dioxide from fossil fuels in the United States. Gasoline-powered vehicles are responsible for about 60% of the carbon from the transportation sector. They also emit the majority of carbon monoxide, as well as substantial proportions of oxides of nitrogen and volatile organic compounds (Davis, 2004).

The transportation sector became the largest producer of carbon dioxide for two reasons. First, with the exception of 2007 and 2008, when gas prices reached new highs and ...

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