lecture_gasoline_policies_lec1_fall2011

lecture_gasoline_policies_lec1_fall2011 - (Misguided)...

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(Misguided) Policies Targeting the Transportation Sector Energy Economics and Policy ECON 489/689
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2 Policies We Will Discuss 1. Gas tax holiday 2. “Cash for Clunker” Program See paper in reader by Knittel 3. Effect of gas prices on purchases of new vehicles
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Do High Gasoline Prices Impact Households? 3
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4 What if Gasoline Taxes Were Lifted?
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5 Economists and Gasoline Policy… A Gas tax holiday? http://www.youtube.com/watch?v=ZY9OCmHKiSI http://www.youtube.com/watch?v=TzhcEuh79og eature=relmfu
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What If Gasoline Taxes Were Lifted? What’s wrong with this logic? If gasoline taxes are 52.5 cents in Indiana, then removing the tax will reduces gasoline prices by 52.5 cents. Afterall, the tax is added “after the price is set” Was Hillary right or Obama right? I.e. would removing the gas tax (temporarily) lower retail gas prices or not? Review of “tax incidence”…
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This note was uploaded on 02/20/2012 for the course ECON 489 taught by Professor Nelson during the Fall '08 term at Texas A&M.

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lecture_gasoline_policies_lec1_fall2011 - (Misguided)...

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