Gas prices and fuel efficient cars

Why are cars in the United States still so damn fuel inefficient? On /. right now, an argument is going on over whether this might be because gas is so damn cheap in the USA. We see the gas prices fly up to over $2.50, and we get scared. But in Europe, gas prices have been over $6 US/gallon for awhile.

However, in Europe cars are much more fuel efficient (out of necessity). They are also more beautiful and more fun to drive, but that’s beside the point. The main thing is that they are much, much more fuel efficient.

So how can we get that here? Well, one way is to use the European model, because we know it works, and start taxing gasoline more. But I think that’s actually a bit unfair, because it punishes even those who make better purchasing decisions, such as Prius drivers.

I think that we should institute a graduated tax on cars based on their fuel efficiency ratings. Oh, you get below 15 mpg? That’s too bad–now you have to pay for a lot of gas, and your car will cost 20% more. Oh, but you really like your GMC Yukon 4WD? Well, be prepared to cough up an extra few thousand dollars for it, then. We’ll take the money and use it to research alternative fuel sources.

Meanwhile, those cars that are really fuel efficient should get some major price breaks. This already happens sometimes with the Prius. But I think the discounts should be much greater and that America should really open up the market for fuel efficient cars.

We’ve been living in this dream world where the environmental externalities and consequences of our guzzling of cheap oil has absolutely no impact on our lives. It does have an impact, and Americans just don’t see it. They need to be encouraged to buy fuel efficient cars by making the inefficient ones expensive and the efficient ones cheap. That’s really so obvious and easy, I don’t see why it hasn’t happened yet.

(Well, I do see why, but I just wish we weren’t so damn beholden to oil companies.)

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