March 4th, 2010
By SINDYA N. BHANOO, The New York Times
Gas has to go to 7$ a Gallon? No Thanks! Obama
To meet the Obama administration’s targets for cutting greenhouse gas emissions, some researchers say, Americans may have to experience a sobering reality: gas at $7 a gallon.
To reduce carbon dioxide emissions in the transportation sector 14 percent from 2005 levels by 2020, the cost of driving would simply have to increase, according to a forthcoming report by researchers at Harvard’s Belfer Center for Science and International Affairs.
The 14 percent target was set in the Environmental Protection Agency’s budget for fiscal 2010.
In their study, the researchers devised several combinations of steps that United States policymakers might take in trying to address the heat-trapping emissions by the nation’s transportation sector, which consumes 70 percent of the oil used in the United States.
Most of their models assumed an economy-wide carbon dioxide tax starting at $30 a ton in 2010 and escalating to $60 a ton in 2030. In some cases researchers also factored in tax credits for electric and hybrid vehicles, taxes on fuel or both.