THE REAL PRICE OF GASOLINE
Date: Sunday, November 02, 2003 @ 14:23:48 GMT Topic: General
A recent report by the International Center for Technology Assessment [CTA] identifies and quantifies the many external costs of using motor vehicles and the internal combustion engine that are not reflected in the retail price Americans pay for gasoline. These are costs that consumers pay indirectly by way of increased taxes, insurance costs, and retail prices in other sectors.
The report divides the external costs of gasoline usage into five primary areas: [1] Tax Subsidisation of the Oil Industry; [2] Government Program Subsidies; [3] Protection Costs Involved in Oil Shipment and Motor Vehicle Services; [4] Environmental, Health, and Social Costs of Gasoline Usage; and [5] Other Important Externalities of Motor Vehicle Use. Together, these external costs total $558.7 billion to $1.69 trillion per year, which, when added to the retail price of gasoline, result in a per gallon price of $5.60 to $15.14.
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