The idea of raising taxation is a taboo subject at the best of times – but according to one journalist it could be the only way to save a green car revolution.
According to the column, reducing both greenhouse gas emissions and the dependency on foreign oil requires vehicles with higher fuel efficiency as well as cars that capitalise on alternative fuels and technology. However, the author believes that as these green cars are more expensive to produce and therefore require higher retail prices, it is necessary for gas prices to remain high to encourage development.
Car manufacturers, he believes, need assurances that their investment into green car development is worthwhile. He states that this can be accomplished if the Federal Government agrees to impose a floating gas tax to ensure a high and stable price.
The tax would be used for road and bridge maintenance and construction, which in turn would provide jobs for the faltering economy. With tax rebates and credits for low-income families and those who rely on their vehicles for their businesses, as well as an introduction of the tax in stages, he believes that any negative effects can quickly be mitigated.
The author writes “I do not see how major investment in green car development and production is likely to occur without assurance of high and stable gas prices”. However, the question is, do you agree? Do you think a tax to keep gas prices high should be implemented so that greener cars can prosper? Leave a comment with your thoughts.
