MGSC05H3 Lecture Notes - Lecture 3: Carbon Tax, Fuel Efficiency, Backtracking
Document Summary
Ontario liberal gov. introduced the gas guzzler tax in 1989. Affected all vehicles that has a highway fuel consumption rating above 9. 5l/100km. Oppositions : automobile importers of canada (aic), the canadian auto. Workers (caw) and motor vehicle manufacturer associations (mvma) 1 years later, ndp party took office in 1990, predicted a budget deficit of 1. 7m. 2 new taxation laws that affected the auto market: Increases in gas price by 3. 4 cents/ liter. Doubling of the ggt & widening its tax ranges into family sedans and sports cars. Promotion of smaller cards (safety concerns: smaller cars have more accidents) Promotion of fuel-efficient cars encourage people to drive more. Inequality in the market: competitive disadvantage some companies taxed more than others, ggt ineffective because it only penalize those purchasing new fuel-inefficient vehicles, only family sedans and sport utility vehicles affected. On government doesn"t take city fuel consumption into account. Fuel conservation best achieved through carbon tax on fossil fuels.
