Future Cost Tax Example People consider one half of future costs Benchmark: 150,000 miles, 40 mpg, $30,000 –Societal cost = $44,060; sting = $37,000 Reference: 100,000 miles, 25 mpg, $20,000 –Societal cost = $52,500; sting = $36,250 Tax each vehicle to equalize gasoline sting and societal cost in each vehicle's life Tax short-lived representing future purchase cost of that same vehicle
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