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American Focus > Blog > Economy > Carbon taxes vs. regulation – Econlib
Economy

Carbon taxes vs. regulation – Econlib

Last updated: September 12, 2024 11:40 am
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Carbon taxes vs. regulation – Econlib
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Electric cars are becoming more popular as people look for ways to reduce their carbon footprint and save money on gas. A recent article from Bloomberg discusses a new breed of electric vehicle that promises an impressive 700 miles per charge. What sets this car apart is that it runs on batteries 95% of the time, but a gasoline engine can recharge them for longer trips, which helps to ease range anxiety.

The article highlights that EV sales growth has slowed in recent months, partly due to consumers’ concerns about finding places to recharge their cars. This new type of EV would greatly reduce that problem. Currently, these cars are available in China but not in the US. The article mentions that President Joe Biden is seeking 100% tariffs on Chinese cars, making it difficult for American consumers to access this technology.

Producing this type of car within the US poses its own challenges. The Sierra Club has expressed concerns about this type of car being classified as a hybrid rather than a pure EV, which could stall momentum in the transition to zero-emission vehicles. However, the industry and regulators are still debating how to classify these cars.

The article raises an interesting question about what is better for the environment: selling a few cars that are 100% emission-free or selling a lot of cars that are 95% emission-free. It suggests that a carbon tax may be a more efficient way to encourage consumers to make environmentally friendly choices, including considering the external costs of emissions.

Overall, the article emphasizes the importance of finding a balance between perfection and practicality when it comes to environmental technology. It’s essential to continue pushing for innovation while also recognizing the benefits of incremental progress.

See also  SoundHound AI (SOUN) Wins Big Contracts, DA Davidson Boosts Price Target to $15
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