Study shows carbon tax may not make big dent in driving habits
Environmental Capital notes that the anticipated tax on carbon emissions in the US will do little to curb emissions from cars. This is because, as a new study by the Congressional Budget Office finds, pricing carbon at even $28 a ton, which is substantially higher than carbon currently costs U.S. but lower than the approximately $30 a ton in Europe, would only raise gas prices by 25 cents per gallon over 4 years. This is not an insignificant amount of money. However, given that US gas prices increased by over 100% in the last few years and overall driving rates decreased only minimally, it is unlikely that 25 cents more per gallon will make a major dent in our driving/emissions.
This does not mean a carbon tax would be ineffective though, since it will apply far beyond just petroleum, to include all types of energy generation.
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