Charging a fee or tax on gasoline is an ineffective way to phase in full-cost pricing to offset the environmental and health costs caused by automobile use.

Question

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Charging a fee or tax on gasoline is an effective way to phase in full-cost pricing as it directly targets the use of fossil fuels, encouraging consumers to reduce consumption or switch to cleaner alternatives, thereby internalizing the environmental and health costs associated with automobile use.

Charging a Fee or Tax on Gasoline Is an Ineffective