(Summary here is from subscription newsletter, so not linked.)
A variable surcharge on transportation fuels could help California curb greenhouse gas emissions and generate revenue the state needs to shrink its budget deficit, Severin Borenstein, a University of California Berkeley economist, said Jan. 15.
Kinda hard to do with everybody leaving the state, isn't it?
| Unless you spread it to all 57 states. Stay tuned ... |
Borenstein said the "Fuel Price Stabilization Program" would create a "price floor" for gasoline and provide clear long-term price signals for consumers
Under the plan, a surcharge would be imposed on fuel whenever the price falls below a certain target. The surcharge would apply to retail sales of gasoline, diesel, and jet fuels, and it would move inversely to the world price of oil, Borenstein explained.
The mind boggles. This guy is an economist?
The price target would depend on how much revenue the state wants to generate and the "price signal" it wants to send to discourage increased fuel use, according to the plan.
Ummmm - it might not work out quite that way....
Rapid drops in gasoline prices, like the one that began in July 2008, are likely to turn drivers back to gas-guzzling vehicles and habits
Then why don't you quit breathing? There'd be less CO2 right there.
The surcharge would be a tough sell in the Legislature and to the public because in
"We'd make sure it happened. It's for the children, you know."
Borenstein's Fuel Price Stabilization Program, however, does appeal to clean technology developers who want a price floor for oil that would encourage investor and consumer interest in their products.
So the
CALSTART, the consortium of businesses and groups that support clean transportation technologies and host of the two-day conference, is recommending that the state adopt such a fuel surcharge.
"It's further bankrupt the state, if that's possible, but what the hell, we'll get ours."
State Assemblywoman Fiona Ma (D) led a discussion on how best to motivate consumers to
The Sierra Club's Bill Magavern, however, said the fees cannot appear to be penalizing consumers.
"It's OK to penalize
"We need to give them choices, like non-vehicle ways to get around," he said.
They can walk, after all.
Good grief.