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Fee Enterprise

California considers "feebate" bill to make polluting cars more expensive

Posted at 7:16 AM on 29 Jan 2008

California is pursuing new ideas to reduce vehicle emissions in the state after the U.S. EPA denied the state a waiver it needed to implement its vehicle greenhouse-gas emission standards. California lawmakers are expected to vote on a bill this week that would set up a "feebate" system for new car purchases. Excessively polluting vehicles would become more expensive to buy while the cost of buying efficient cars would fall. One-time fees of up to $2,500 would be charged for new inefficient vehicles like Hummers and Chevy Tahoes while cars like Civic and Prius hybrids could earn similarly large rebates. Vehicles that fall somewhere in the middle of the efficiency spectrum would either earn smaller dividends, require smaller fees, or remain unchanged. If the bill is approved, the state air board will decide which vehicles fall where on the fee/refund scale. Similar legislation failed to pass the state legislature last year, but the EPA's waiver slapdown has increased pressure on California lawmakers to approve other ways of reducing emissions.

source:  Los Angeles Times
see also, in Gristmill:  California mulls nation's first feebate bill

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Comments: (9 comments)

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Why Not Use Carbon Credits?


I don't see why a new bureaucracy has to be enacted when we've already established the idea of carbon exchanges.

For example, rather than taxing a Hummer, the Hummer could buy a credit from a Prius owner, or a Tesla owner.

In fact, I've proposed this idea as a way to encourage mass transit and bicycling.  In my opinion, drivers should be buying credits from me, because I bicycle and thus reduce pollution.  A bus rider could then get some "free rides" purchased for him via an Exchange on a state sponsored website by gas guzzlers.

Bicyclists could save or pool their credits to use the money for more bicycle trails and lanes and increased safety.

love it

Love the idea, it breaks down the price barrier that every non-environmentalist cries out about when talking about hybrids... as if hummers were cheap.

I like jabalio's idea as well, even though I fear it would become a logistical nightmare!


www.campusprogress.org

bad policy

The MPG rating along doens't matter.  It's M/MPG = G that matters for GHG emissions.

Why should someone buying a large SUV that drives it 2,000 miles/yr pay a de facto carbon tax higher than that paid by someone who buys a Prius and drives it 20,000 miles/yr?

The gasoline tax is DIRECTLY PROPORTIONAL to CO2 emissions and is the best device to tax those emissions.

True...

The gasoline tax is DIRECTLY PROPORTIONAL to CO2 emissions and is the best device to tax those emissions.

...very true, but then we'd haveta figure out how much every individual drove, how much gas mileage they got on each trip, etc.

It could work in principle, but to actually enact it would be a logistical and legislative (possibly judicial) challenge.

Could work if we required some sorta senor on all vehicles that'd calculate emissions per trip and then upload said data to the proper agencies.

Except fuel taxes don't work as well

Also more specifically.

Research has shown that consumers react far more to lump-sum purchase costs of the car, rather than changes in the incremental cost of the fuel, when making purchase decissions.

While it would be more "accurate", taxing fuel would be less effective, or require a much larger prohibitive cost before they take action.

Specifically though, the whole point of this legistlation isn't neccisary to stop bad driving.

It's to reduce the relative purchase cost of greener car technologies.

Technologies which would not be commercially competative otherwise.

-David Ahlport

He's Been Good...Can He Have A Carbon Credit?


You can't say who is good unless you define what good is.

Yes, a Prius that goes 20,000 miles may be like a Hummer that goes 2,0000 miles...but is that the point?   I mean, if the only point of a Prius is to encourage people to use it 10 times as much, then doesn't that defeat the whole purpose of the Prius with regard to husbanding resources?  

So, a tax on resources is not the right approach.   A tax on not using resources is.   A bicycle that does not use resources should be rewarded.

gibberish

So, a tax on resources is not the right approach.   A tax on not using resources is.   A bicycle that does not use resources should be rewarded.

Thats what a tax on resources would achieve.

The "reward" is that you aren't paying the carbon cost associated with it.

And does "A tax on not using resources". Even make sense?  If you read that literally, you are asking to levy a tax against people who ride bicycles.

-David Ahlport

The effect of higher vehicle-costs on driving

GreyFlcn wrote: consumers react [...] to lump-sum purchase costs

That is true. In order to receive value from a more-expensive commodity, they use it more, and they use it in more-liberal ways (in terms of cars, that would mean more-spirited driving).


Both Should Be Used

A very high gasoline tax should be enacted in addition to a high tax on SUVs and other large, gas-guzzling needless crap like pickups and vans (I am NOT referring to people who use these things for jobs, but the vast majority don't, and the selfish soccer mom attitude that a van is necessary is pure BS).

What's missing from the article and Grist's report is that California used to have a 2% tax on vehicle license fees; the more your vehicle was worth, the more you paid to renew your license plate.  While there are a few exceptions -- notably hybrids -- the more expensive vehicles generally get worse fuel mileage and pollute more (they have bigger engines).  Governor Schwarzenegger, who Grist likes to commend for pro-environmental policies, repealed this generally environmentally friendly tax almost as soon as he took office.  The proposed plan would put money back into the state's coffers that was removed by his repeal of the vehicle license fee.

In addition to a much higher gasoline tax, heavily taxing the most polluting and gas guzzling vehicles should be also be done.  Ideally, these vehicles should not even be allowed to be produced, but until humans evolve enough to realize that the environment is far more important than petty personal freedoms, we can't realistically expect anything like that.

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