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Science 17 November 1978:
Vol. 202. no. 4369, pp. 755 - 757
DOI: 10.1126/science.202.4369.755
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Articles

A New Tax on Gasoline: Estimating Its Effect on Consumption

ALAN M. SCHNEIDER 1

1 Department of Applied Mechanics and Engineering Sciences, University of California, San Diego, La Jolla 92093

Based on extrapolation of a recent estimate of the elasticity of demand for gasoline, it is concluded that a tax of 5 cents per gallon per year over the period 1979 to 1988 can be expected to produce significant reductions in gasoline consumption, contrary to widely expressed opinions.

Submitted on September 9, 1977
Revised on August 1, 1978

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Science. ISSN 0036-8075 (print), 1095-9203 (online)