Depends on how high you make the tax, lower priced car might offset that.
And gas tax also disproportionately affect the poorer population, for many of them cars are mandatory because of commuting, etc. And those who are well-off might just not care about the tax.
Very inefficient cars would burn a ton of fuel and then consumers would be paying a fortune in fuel taxes.
Depends on how high you make the tax, lower priced car might offset that.
And gas tax also disproportionately affect the poorer population, for many of them cars are mandatory because of commuting, etc. And those who are well-off might just not care about the tax.
That’s the case with all Pigouvian taxes.