Thursday, August 11, 2005
Entropy Production: The Feebate: "The best way I know of to encourage more efficient automobile buying habits is called a feebate. A feebate is a zero-sum tax-slash-rebate on motor vehicle fuel economy. Car buyers with fuel economy above the mean get a cash rebate, while gas guzzlers must pay an additional tax. The government simply acts as the creditor in the exchange -- it gains no net tax revenue. E.g. it is a very socialist concept. The nature of the feebate helps offset the higher capital investment of a hybrid vehicle. Increased mileage is, of course, a built-in reduction in operating costs."
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