The Gas Tax and the Environment

According to the National Association of Convenience Stores, the number one supplier of fuel in the US, the demand for gasoline in 2011 is expected to reach over 9 million barrels per day. This comes as little surprise, seeing as how the United States alone accounts for almost a quarter of the world’s oil consumption. Most Americans rely heavily on private vehicles as their main form of transportation. Owning your own car is a quick and convenient way to get around and has become a major influence in American culture. The problem, however, is the fact that in this country, the average person emits nearly 20 tons of CO2, totaling over 5.9 billion metric tons of this greenhouse gas pumped into the atmosphere.

Compared to other developed nations, and many less-developed ones, the United States isn’t doing so well in terms of environmental policy, either. Currently, we rank 61st with a mediocre 63.5 out of 100 points on the Environmental Performance Index, a system that tracks and compares the environmental policies and performance of 163 nations. In spite of this, little is being done to remedy the situation because it’s difficult to balance the environmental, political, and economic factors that come into play. That’s where the gas tax can help.

Remember the summer of 2008 when gas prices across the country jumped the $4 mark? Motorists across the country who were feeling the pinch learned to adjust by using more public transportation, driving less and downsizing, or even getting rid of, their gas-guzzling vehicles. Not surprisingly, emissions from petroleum fell by 6% that year. Though that might not seem like much, that means 165 million metric tons of CO2 were saved from the atmosphere.

It is clear that the United States consumes and pollutes far more than its fair share and the most effective way to alter that behavior is to use a market approach, and the gas tax fits this criteria perfectly. Because the tax is a government-imposed fee, as opposed to a fluctuation in the worldwide economy, there would be a much more consistent and significant reduction in our carbon footprint. We need to send market-based signals that make it clear that we are in favor of switching over to greener, cleaner, more sustainable ways of life.