29 Mar '13, 3pm

IMF Proposal For Higher Gas Tax Would Encourage Electric Cars

IMF Proposal For Higher Gas Tax Would Encourage Electric Cars

In a highly publicized research paper released this week, the International Monetary Fund argued that global energy subsidies should be reduced, and the U.S. should introduce a $1.33 per gallon gas tax. The tax increase would curb congestion, reduce accidents and help cut carbon emissions, according to the I.M.F. Another benefit, not mentioned in the I.M.F. report: Higher gas taxes would also foster a rapid acceleration of sales of electric cars. Today, consumers are encouraged to buy an electric car or plug-in hybrid with a federal tax credit, regional rebates for buying the vehicle and charging equipment, and other perks such as access to carpool lanes by solo drivers. But these types of incentives are generally considered less effective in stimulating the market for fuel-efficient vehicles compared to high gas prices. In other words, the most effective market tool to su...

Full article: http://www.plugincars.com/imf-proposal-higher-gas-tax-wou...

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