Consumer Incentives to Reduce Greenhouse Gas Emissions from Personal Automobiles

The focus of this paper is short-term policy options to address greenhouse gas emissions from personal automobiles. Primary policies considered include gasoline taxes, carbon taxes, a carbon cap-and-trade program, cost-shifting initiatives, and a pay-at-the-pump auto insurance scheme. Pay-at-the-pump auto insurance is recommended on the basis of cost effectiveness, equity, public appeal, and political feasibility. Also recommended are incentive-based transportation control measures such as congestion pricing, workplace parking subsidy reform, and accelerated vehicle retirement. These short-term policies complement the long-term strategies considered by the President's Policy Dialogue Advisory Committee (Car Talk).