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-andtrade program, cost-shifting initiatives, and a pay-at-thepump auto insurance scheme are examined closely. Pay-at-the-pump auto insurance is recommended on the basis of cost effectiveness, equity, public appeal, and political feasibility. Also recommended are incentivebased transportation control measures such as congestion pricing, workplace parking subsidy reform, and accelerated vehicle retirement. These short-term complement the long-term strategies considered by the President’s Policy Dialogue Advisory Committee (Car Talk).