Related Experiment Video
Updated: Jul 12, 2026
09:48
Original Experimental Approach for Assessing Transport Fuel Stability
Published on: October 21, 2016
A new tax on gasoline: estimating its effect on consumption
Science (New York, N.Y.)
|November 17, 1978
Summary
A proposed 5-cent annual gasoline tax from 1979 to 1988 could significantly reduce fuel consumption. This finding challenges common assumptions about the impact of such policies on driving habits.
Area of Science:
- Economics
- Energy Policy
- Environmental Science
Background:
- Gasoline demand elasticity is a key factor in predicting the effects of fuel taxes.
- Previous opinions suggested limited impact of small, incremental fuel taxes on consumption.
Purpose of the Study:
- To estimate the potential reduction in gasoline consumption.
- To evaluate the effectiveness of a phased gasoline tax policy.
Main Methods:
- Extrapolation of existing gasoline demand elasticity data.
- Modeling the impact of a 5-cent per gallon annual tax increase.
Main Results:
- Significant reductions in gasoline consumption are projected.
- The proposed tax policy is expected to be more effective than widely believed.
Conclusions:
- Incremental gasoline taxes can lead to substantial decreases in fuel use.
- Policy interventions, even seemingly small ones, can influence consumer behavior in the energy market.
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