The Federal Government, under the guise of “energy freedom” has crafted a broad array of overbearing and Constitutionally invalid laws designed to increase fuel economy among cars on the road today and steer our country away from its fossil-fueled way of life. Despite the best intentions of the federal government, the array of laws on the books are not the best way to accomplish change in our world.
Under the current system, the federal government’s mechanisms for change are composed of three main areas: Minimum mileage requirements, direct subsidization of energy development, and the ubiquitous “Cash for Clunkers” program. Of these, the first is the most egregious in terms of impacting the average American consumer.
The fundamental flaw of all three of these mechanisms is the belief that the government is the entity that needs to push for change. However, the government has never been an efficient mechanism for change; federal programs are often muddled in bureaucracy and unfairly favor some technologies at the expense of others. For example, during the Bush administration a major push was into research of switch grass, a plant that could be turned into ethanol. However, the federal government ignored other promising technologies such as hemp-based fuel, or solar, geothermal or wind power.
Minimum mileage requirements are harmful to consumers because they eliminate choice. The current federal system requires the average mpg rating of all cars sold by a company to exceed a certain threshold. What if an entrepreneur wanted to make a company that specialized in one particular class of car, such as large trucks to meet a consumer demand? Under the current system, they would still need to sell fuel efficient cars to produce gas guzzlers.
My solution is a simple one: replace all of these programs with one tax. By increasing the federal fuel tax from its current level of eighteen cents to a far steeper three dollars, the burden of fuel efficiency shifts from the federal government to private enterprise. Under this new system, a private corporation has tangible financial incentive to fund research, and consumers will pay for increased fuel efficiency because it is worthwhile for them to do so. Furthermore, unprofitable research will be stifled, as a profit-driven and results-oriented corporation has no desire to waste money in areas that lack promise.
The tax soultion also gives automotive companies something that has been missing for decades: specialization. A CATO article listed “GM’s competitive strength [as] the luxury car, muscle car, SUV, and pick-up truck categories. “ An automotive company should not be forced to develop small cars as a cost of doing business. Rather, they should be allowed to market what customers want. If Ford’s most profitable cars are Mustangs and pick-ups, there is no reason for them to waste factory space on compact cars.
The major caveat to this system is that the cost of goods will go up. However, even this is not a bad thing. Instead of produce being shipped across the country to stock shelves, the market would reward local farmers in small towns across America without the need for biased and politically controversial federal farm subsidies.
Furthermore, this proposal will ease congestion on major US thoroughfares. Between fewer and shorter truck shipments and fewer people making frivolous trips, less wear and tear will occur on our roads. Corporations that abandoned railroads in the 70s and 80s would begin reinvesting, since there would be demand for them; demand created by the free market and not a Federal entity. Programs such as Amtrak, an unprofitable government entity, may become profitable as its fares become more affordable.
This proposal will hurt poor Americans the most. However, a system of “rationing” could be created, where criteria such as distance to employment and number of dependents would allow poor families to receive a portion of cheaper gas. More importantly, it would give them the power of choice – the ability to prioritize their travel and make responsible decisions at home so that as a country we can achieve energy independence.
For college students, these ideals provide a similar outlook: a construct that rewards personal choice. Frivolous trips home or to another college would be less frequent and would only occur when one believes it is worth the expense. Things like the Lehigh University Ride Board would be utilized more often, creating a sense of community amongst the student body. Furthermore, increased transportation costs would lead to increased programming on campus and a decreasing need to go off campus to have fun, again engendering fellowship amongst the student population.
Despite the cost of higher fuel taxes, it is the only responsible alternative to federal subsidies and redistribution of wealth. By creating a system that rewards innovation and allows private corporations to decide the value of products, the United States can become a greener country because its citizens, not its lawmakers, choose to make it so. Furthermore, car companies would gain the ability to specialize without the need to sell super-efficient cars to stay in the marketplace.