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In a study published in the journal Energy Economics , MIT researchers have found that a fuel economy standard is at least six to fourteen times less cost effective than a fueltax when targeting an identical reduction in cumulative gasoline use (20% by 2050).
users pay for the construction and maintenance of roads via a federal fueltax. Revenues from the tax go into the federal Highway Trust Fund, which is independent of the General Fund; every five years or so Congress passes an authorization bill to allocate these revenues. States use similar mechanisms. —Huang et al.
BCG comparison of the CO 2 reduction potential and cost of different technologies. In addition, the cost to the consumer would be about $50 to $60 per percent CO 2 reduction—roughly half the cost of what was expected three years ago. Source: BCG. Click to enlarge. The consumer.
The scenario analysis includes an estimate of the total costs of the LC1 compared to the BAU scenario. Fuels: liquid petroleum fuels that dominate transportation today and renewable and alternativefuels that can act as substitutes. Transportation pricing: Gasoline taxes. Active transportation.
Furthermore, the increase in fuel duty may be seen as a tax that encourages people to think about how they drive and to take a more eco-conscious approach to limit their mileage. There are encouraging signs for people struggling to buy new cars too.
The report addresses topics related to the evolution of vehicle technology and its deployment, the development of alternativefuels and energy sources, the impacts of driver behavior, and the implications of all of these factors on future GHG emissions in the United States, Europe, China, and Japan.
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