The gasoline tax is the most effective type of a product charge to reduce carbon dioxide emissions.

Question

Quizplus · Accepted Answer

The gasoline tax, while it can reduce emissions from vehicles, is not the most effective type of product charge for reducing carbon dioxide emissions overall. Broader carbon pricing mechanisms, such as a carbon tax applied across multiple sectors or cap-and-trade systems, are generally considered more effective in reducing overall carbon dioxide emissions by incentivizing reductions across a wider range of sources, not just gasoline consumption.

The Gasoline Tax Is the Most Effective Type of a Product