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1321 points kwindla | 2 comments | | HN request time: 0s | source
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aidenn0 ◴[] No.43795946[source]
For anyone curious, if you made a similarly sized gas-powered pickup with an i4 engine, it would be penalized more than a full-sized pickup for being too fuel inefficient, despite likely getting much better mileage than an F-150 because, since 2011, bigger cars are held to a lesser standard by CAFE[1].

1: https://en.wikipedia.org/wiki/Corporate_average_fuel_economy...

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MostlyStable ◴[] No.43796306[source]
Example #5621 that a simple carbon tax would be miles better than the complex morass of regulations we currently have.
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aidenn0 ◴[] No.43796437[source]
That's overly reductive.

1. Poorer people tend to drive older vehicles, so if you solely encourage higher fuel economies by taxing carbon emissions, then the tax is (at least short-term) regressive.

2. You can work around #1 by applying incentives for manufacturers to make more efficient cars should lead any carbon tax

3. If you just reward companies based on fleet-average fuel economy without regard to vehicle size, then it would be rather bad for US car companies (who employ unionized workers) that historically make larger cars than Asian and European companies.

4. So the first thing done was to have a separate standard for passenger vehicles and light-trucks, but this resulted in minivans and SUVs being made in such a way as to get the light-truck rating

5. We then ended up with the size-based calculation we have today, but the formula is (IMO) overly punitive on small vehicles. Given that the formula was forward looking, it was almost certain to be wrong in one direction or the other, but it hasn't been updated.

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MostlyStable ◴[] No.43796560[source]
All carbon tax is inherently regressive but that's also trivially fixable. Make it revenue neutral and give every citizen a flat portion of the total collected revenue. Bam, it is now progressive, since on average richer people will spend more on fuel (and therefore the tax) even though it is likely a much smaller percentage of their spending.

Every single one of your ideas has problems that are solved by a carbon tax. Taxes are simple, they accomplish what you want, and they don't have loopholes. A carbon tax will _never_ have the unintended consequence of making emissions worse. Many of our current regulations, including the one I was responding to do exactly that because they actually cause people to buy larger trucks than they otherwise would with worse fuel efficiency.

A carbon tax might not on it's own be enough to solve the problem (especially if you set it to low), but no matter what level you set it, it will help. Thanks to unintended consequences, many of our current regulations are actively counter productive, while _also_ having negative economic and other costs.

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abakker ◴[] No.43796974[source]
All costs are regressive to people with less ability to bear them. By making them not regressive we don't change behavior! It doesn't matter if they're regressive if the objective is to get people to not drive or to burn less gas. Shifting the cost to the rich doesn't change behavior and it doesn't reduce actual carbon. There's a lot more low-income emitters than high income ones.
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bryanlarsen ◴[] No.43797194{4}[source]
It would change behaviour more, not less.

If you set the carbon tax at about $1/gallon of gasoline, the corresponding carbon rebate would be about $1000 per family per year.

That wouldn't affect rich people much; neither the $1/gallon nor the $1000 extra income is significant. But many rich people get rich by being penny-wise, so many would change behaviour, by buying an EV or similar.

But for poor people both $1/gallon and $1000 per year is significant. If gas was $1/gallon more expensive, poor people definitely would drive less.

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Loudergood ◴[] No.43797995{5}[source]
The real hardship for the poor here is they cannot float that $1/gallon for a year before getting the $1000
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robocat ◴[] No.43799064{6}[source]
The same thing happened with electric car purchase incentives in New Zealand. The poor cannot afford to buy a new car - so only the well off received the efficient car discount incentives.

The trickle down as those cars depreciated in value was years away.

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TylerE ◴[] No.43799166{7}[source]
That doesn’t really sound like the worst thing?

Someone has to buy them for full price before they show up on the used market 5-10 years later.

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robocat ◴[] No.43799381{8}[source]
That doesn't make sense because the second hand car is not cheaper by the amount of the subsidy. Say subsidy is $20k, second-hand car might eventually be $6k cheaper (and the discount time value of money means that the $6k is actually less than $4k). Giving the wealthy person $20k, and the poor person less than $4k is strange.

New Zealand used car market is likely very different from the market where you are. The cheapest Model 3 I could find was a USD18000 for a 2020.

Subsidies make sense if the environmental gains outweigh the costs of the subsidies.

Subsidies: there was a purchase subsidy, charging stations were subsidised, and I think electric cars are not paying their fair share of road maintenance (much of our road costs are paid for by an excise tax on usage via petrol-tax or heavy-vehicle-milage).

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otterley ◴[] No.43800288{9}[source]
That math doesn’t add up. If I buy a $100,000 car for $80,000, and I sell it to someone for $60,000, the recipient still gets a $40,000 discount.

And if you pretend that there is no subsidy, and the original owner paid $80,000 just because it cost that much unsubsidized, the second buyer still gets the same discount off the original purchase price.

So the fact that the car was originally subsidized isn’t relevant.

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1. robocat ◴[] No.43802936{10}[source]
The context is about when cars reach the poor - your example of someone spending $60k is irrelevant.

A poorer person in NZ spends at most a few thousand on their car. The original retail price is nearly irrelevant by the time it gets to someone poorish (however maintenance/parts costs do matter for old cars).

The financial benefit of a discount mostly goes to the people that own the car while it depreciates as it trickles down.

Context: In New Zealand, the vast majority of people drive second hand cars (mostly imported second hand from Japan). A 20 year old car is regarded as newish in New Zealand. I am well off, so I have two second hand cars, my daily driver is 2006 I think, and I have a 1996 4WD for other stuff. New cars are only bought by the well off.

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2. otterley ◴[] No.43804619[source]
I hear you. The numbers I provided were manufactured to illustrate the math and support my argument, not to be representative of a typical price.