There's been a lot of CAFE bashing lately, and much of it, I fear, is a bit misguided. Brad Plumer (who I don't mean to single out, he's just the most recent) joins in with a post blasting CAFE in favor of a gas tax, maybe with some means-tested rebates to ease up on the regressivity of it. A few things:
• First, gas taxes are a very direct way of influencing fuel consumption, but it's not clear that, at attainable rates, they actually do influence fuel consumption. Raising the tax by the small, incremental amounts that could (and by could, I mean in a hypothetical world where this was somehow a viable policy option) pass would likely do little to stem consumption. That's because, as it turns out, gas hasn't even been near the top price folks are willing to pay. Most simply bear the burden, preferring to pay more rather than disrupt their lifestyle. The place gas taxes make a difference is, in the end, among the poor, but if we put in rebates like Brad is suggesting, it won't affect them all. I'd like to have a gas tax because I'm all for the added revenue, but it's not going to do much against consumption. If you can afford an Expedition, you can nearly always afford more at the pump.
