Higher gas taxes can mean cleaner environment

“When gasoline taxes increase, there are three behavioral effects on consumption,” said Furman University Assistant Economics Professor Taha Kasim in GSA Business Report. “One, people purchase less gas and drive less; two, demand for fuel-efficient cars increases, and three, households that drive more are the ones driving the fuel-efficient cars.” Kasim spoke to contributor Teresa Cutlip about his work that focuses on the lesser-researched third behavioral effect of increased gas taxes. In terms of policy measures, Kasim says gasoline taxes are much more impactful than other measures aimed at reducing pollution generated by gasoline combustion.