Quote:
Originally Posted by Joe's Garage
Normally I would say yes but to reduce demand means implementing alternate fuels for energy which no one will do willingly, after all it costs money. I say stick it to 'em in a way that forces action, reduce supply so it becomes so damned expensive they have to move to alternate fuels  |
The method used by a number of governments to reduce demand is simple - taxation. I know many will resist any increase in the price of fuel, but look at Europe, the price of fuel at the pumps and what that has done to change the mix of vehicles on the road and buyer behaviour. Canada is, in many ways, very similar to the U.S., yet higher fuel taxation over a period of years has resulted in different buyer consumer behaviour. For example, for many years the most popular vehicle was smaller than in the U.S. (e.g. Honda Civic vs Toyota Camry or Ford Taurus). Compact CUVs / SUVs are far more common than larger ones, etc.
Canadians probably also purchase more diesel vehicles than Americans, at least partially due to the fact diesel typically costs less, not more, than gasoline. It may also have something to do with lower population density, longer trips, and idling vehicles for long periods in cold weather to keep the vehicle warm.
There is no doubt higher fuel taxes, resulting in higher costs at the pumps, drive consumers to select vehicles with lower fuel consumption. Politically it's a hot potato, but there is no doubt it works.