There are lots of ways our government is trying to gently nudge (or coerce) automakers into making more fuel efficient cars. There are of course the upgraded CAFE standards, which demand a fleet-wide fuel economy average for cars of 35.5 mpg by 2016. The Feds have also given out billions in low-interest loans to electric car makers and alt-fuel startups. But what about a tax?
As it turns out, the Peoples Republic of China already imposes a tax on engines with more than 2.0 liters of displacement, and Washington state has also considered just such an idea. But is it a good one?