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Of gas tax holidays...

Gas taxes fund federal highway maintenance to repair our aging highways and bridges desperately in need of repair. Cutting the gas tax cuts billions of $ from needed maintenance to our national infrastructure. Second, cutting gas taxes increases driving, increases our oil consumption (further increasing oil price) and puts more profits in oil companies pockets. The oil companies and foreign oil producers win, not us.

OK, but how can you save on gas without changing cars?

1. Inflate your tires to recommended pressures. This can increase mileage 3-4%
2. Don't use premium grades of gas if your car doesn't require it. The octane requirement is usually printed right at the gas cap. 3 - 5% savings.
3. Don't drive above the speed limit. Wind drag increases exponentially above 60 mph. So driving a little slower can save up to 5%.
4. Replace your car air filter and change the oil. Cost: $35 Savings: 3-4% (and your car will last longer.)
5. Carpool or take the bus when convenient.
6. Walk or ride a bike when you can.

If you plan to change your car,
check our efficient car recommendations. There are plenty of used cars, so you may be able to swap your guzzler and really save.
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Airlines, efficiency, taxes and subsidies

Q: What is the difference between reducing energy consumption in cars or lightbulbs vs. airliners?

A: When people buy efficient cars and lightbulbs they don't typically drive more or leave the lights on longer so energy consumption goes down. Whereas more efficient airliners drive down the cost of flying and people fly more.

The "demand elasticity" for air travel means more efficient planes may not save energy whereas more efficient lighting and cars do. Partly that is because air travel is government subsidized by other forms of transportation so prices are artficially low.

Free Rider?

Unlike vehicles, trains, boats and other fuel users, airlines pay no or almost no fuel taxes worldwide. In the U.S., airlines pay 8% of what other transportation methods use. In many countries, airlines also do not pay VAT or sales taxes.

This means other transportation methods subsidize airlines that are not burdened by taxes.

The zero tax on international airlines stems from the founding of ICAO, the
International Civil Aviation Organization, a part of the U.N. in 1947 in order to foster the development or airlines (OK this is done) and ensure common standards and a level playing field between countries. The ICAO policy migrated its way into most country's domestic airline tax policy as well as some aircraft fly both domestic and international routes.

What To Do?

The
International Air Transport Association (IATA) lobbies hard to prevent aviation fuel taxes, however a few countries such as Norway and the Netherlands have begun to tax domestic airline emissions and fuel.

As part of the United Nations, we think ICAO has a responsibility to endorse airline fuel be taxed at the same rate as road transportation for domestic and bilateral international routes.
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