Low-price elasticity in transport sector
A carbon tax wouldn't induce drivers to switch to low-carbon alternative fuels because virtually none are available.
Drivers would not respond to a $25-a-ton tax. A CO2 tax of $25 a ton would raise the price of gasoline only about 20 cents a gallon. This would not induce drivers to switch to low-carbon alternative fuels because virtually none are available. In fact, it would barely reduce their consumption. In the transport sector, a carbon tax would have to be huge to induce change.

By Daniel Sperling, director of the Institute of Transportation Studies at UC Davis, and co-leader of the University of California study of the proposed low-carbon fuel standard.
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Anthropogenic Climate Change »Anthropogenic Climate Change
Responding to climate change? »Responding to climate change?
Immediate action required »Immediate action required
How to reduce the risks/impact of climate change? »How to reduce the risks/impact of climate change?
Reduce emissions of greenhouse gases »Reduce emissions of greenhouse gases
How to reduce greenhouse gas emissions? »How to reduce greenhouse gas emissions?
Carbon tax »Carbon tax
Low-price elasticity in transport sector
Long term price elasticity of gasoline is high »Long term price elasticity of gasoline is high
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