Gas Tax Hike Needed to Reduce Oil Consumption, Resources for the Future President Phil Sharp '64 Declares
May 17, 2006
May 17, 2006, Greencastle, Ind. - It's been almost 30 years since the Corporate Average Fuel Economy standard, or CAFE, was set by Congress at 27.5 miles-per-gallon. While some are calling on lawmakers to raise the CAFE -- which was established in 1977 -- to reduce America's demand for fuel, Phil Sharp, president of the Washington, D.C.-based Resources for the Future and a member of DePauw University's Class of 1964, has a different idea. Sharp tells the San Francisco Chronicle that hiking the 18.5-cent-per-gallon federal gasoline tax would do more to change oil consumption.
"Such a tax would have a more rapid impact on consumption than is possible through CAFE alone," Sharp, a former United States Congressman, declares. "The impact would not only encourage consumers to purchase more efficient vehicles, but it would also encourage them to be more economical in their driving."
The Chronicle's Edward Epstein notes, "The idea has little support in Congress, where any tax hike is an unpopular idea, especially in an election year like 2006."
Founded in 1952 as an independent and nonpartisan research institution, Resources for the Future is the oldest Washington think tank devoted exclusively to policy analysis on energy, environmental, and natural resource issues. Visit the organization online by clicking here.Back