KPDS 2004-2 Soru=94

We learn from the passage that one effect of higher taxes on fuel ----.

Europe and Japan do not use fuel economy
standards to any significant degree, but instead rely
principally on high taxes to reduce gas
consumption. Their average tax is more than $200
per gallon, while in the US, federal gas taxes are
only 18 EURO per gallon and average state taxes 22
EURO per gallon. Higher prices at the pump
rusulting from higher taxes increase consumer
demand for cars with better fuel economy. They
also encouarege consumers to reduce their driving.
Research shows that federal taxes on gasoline
would have to increase by a bit less than 50 euro
per gallon to cut gasoline consumptin in the US.
Although a 50 EURO incerase is a lot compared with
the present average total tax of 40 EURO, it would
raise retail gas prices to only a little more than $2
per gallon, tax included. This is far below prices in
Europe and Japan. Even if federal taxes on gas
were doubled, US retail gas prices would still be
much below those in other developed nations.