01 Jan '12, 3pm

Happy New Year John

Happy New Year John

The new year is already bringing changes to North Carolina drivers in the form of a record high tax on gasoline. Revenue Secretary David Hoyle said last month the state motor fuels tax would grow by 3.9 cents per gallon to 38.9 cents starting Sunday. That's the highest-ever state tax on gas. The tax rose by 2.5 cents per gallon in July. State law directs the tax be recalculated automatically twice a year based on a formula linked to wholesale gas prices. The North Carolina House voted in November to cap the tax at 35 cents for six months, but the Senate declined to take up the bill, saying it wasn't the right time to consider the change. via www.wral.com Nothing says Happy New Year like a natural experiment on the price elasticity of demand at the state level. My prediction: Gas consumption by NC residents will change very little. Gas stations in North Carolina along I-95 ...

Full article: http://www.env-econ.net/2012/01/happy-new-year-john.html

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New post: Happy New Year 2012

New post: Happy New Year 2012

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