$4.00 Gas plus a $4.00 Gas Tax
Or, as it could be called, Europe.
Recently Morgan Housel asked the question "Can We Handle $4.00 Gas?"
After I read the discussion that followed I was interested to find out how Europeans handle their much higher pump prices for gasoline.
In the United States average /capita gasoline consumption is 430 gallons/year ranging from a high of 688 gallons/year in Wyoming to a low of 296 gallons/year in NY. I just cannot believe the California numbers posted here so I am throwing them out along with Vermont, Georgia, Missouri and Ohio.
Europeans average 253 gallons/year in gasoline consumption.
Europeans spend 253 x $8.00 = $2,024 dollars/ year on gasoline.
Americans spend 430 x $4.00 = $1,720 dollars/ year on gasoline.
New York spends 296 x $4.00 = $1,184 dollars/ year on gasoline.
Wyoming spends 688 x $4.00 = $2,752 dollars/ year on gasoline.
In 2009 the average fuel economy of an automobile was 43mpg in Europe, 42 in Japan, 35 in China and 25 in the United States.
So yes, I believe we could handle it. And obviously this disregards the wealth redistribution of using our atmosphere and water as a dumping ground for spills and exhaust.