- Identify the difference between a tax on gasoline and a tax on the actual emissions that is to tax or charge on each unit of emissions. Is there any other alternative approach to reduce air pollution from driving (mileage tax or gasoline credit market)? The primary focus of this answer should be about the economic incentives created under each system. Also, you should keep in mind the VW scandal when addressing some of these incentives (that is, the incentive to cheat).
- People argue that a higher tax on gasoline is not necessarily an increase in gasoline taxes. Explain if you agree or disagree with this statement.
Accurate answers please
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