The Real Meaning of Fuel Efficiency

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13 May 2010, 3:47am

Greg Mankiw:

Even if you believe saving gasoline is a holy cause, subsidizing electric cars simply is not a substitute for politicians finding the courage to jack up gas prices. Think about it this way: You can double the fuel efficiency of any car by putting a second person in it. You can increase its fuel efficiency to infinity by refraining from frivolous trips.

I couldn't have said it better myself. It was only a few days ago I discussed with a friend of mine how people rave about how this car gets 32mpg which is such a huge step up from that car which only gets 29mpg. You know what gets way better mileage? Walking. Or a bike.

I said it before, and I'll say it again. We need a huge tax on gas. I'm talking 100%. It worked for cigarettes. And the money from the taxes can go to building more efficient public transportation. Of course, there will be loads of exceptions, like commercial use or rural use, which will eventually be its downfall, resulting in merely changing the game to who can bend the rules and how, much like how every car in Texas has a "truck" license plate to avoid emissions standards.

(comments on a WSJ article, via wjerome)