Errors and Omissions

Tradeable Gasoline Rights (TGR) - whaddaya think?

Martin Feldstein, in an op-ed column in today's Wall Street Journal, proposes a system of Tradeable Gasoline Rights, similar to tradeable pollution rights except with individuals rather than organizations as the traders, as a way to spur conservation of oil without a gas tax or mandatory fuel economy standards.

It's an interesting idea. I want us to reduce dependence on foreign oil, but I don't love the idea of throwing tens of billions of additional dollars into the federal coffers, where they'll certainly be spent (effectiveness of the spending is an entirely different matter). And Feldstein has a pretty good argument as to why fuel economy standards, while well-intentioned, won't make enough difference to reduce our overall consumption quickly.

One question would be how much the system would cost. Of course, changing the gas tax system would cost a ton as well.

TGRs--maybe an idea whose time has come?

Wall Street Journal, oil, TGR

posted by Unknown @ 6/05/2006 09:36:00 AM