The Role of the Motor Fuel Tax as an Environmental Tax and Climate Change Policy in the U.S.

April 2018

This article examines the effectiveness of the motor fuel tax as an environmental tax, which penalizes the emission of greenhouse gases and its role in government policy to combat the effects of climate change. The examination of the motor fuel tax will focus primarily on the use and implementation of the tax at various levels of government within the United States and whether the tax is or potentially can be an efficient policy means of protecting against greenhouse gas emission and environmental harm for the benefit of society. Based on current evidence, it does not appear that the motor fuel tax is being levied as an efficient tax.