A New Tax on Gasoline: Estimating Its Effect on Consumption

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Science  17 Nov 1978:
Vol. 202, Issue 4369, pp. 755-757
DOI: 10.1126/science.202.4369.755


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.