This morning, Scioto Analysis released a brief on motor fuel taxation, projecting the impacts on policy options for raising the motor fuel tax.
“Through our analysis, we were able to determine that an increase in the motor fuel tax would reduce consumption of gasoline by 1.6 million to 9.1 million gallons per year, which would reduce use of non-renewables and carbon emissions,” said Scioto Analysis Principal Rob Moore. “At the same time, the options we studied could raise anywhere from $200 million to $1 billion in new revenue, which could significantly bolster state revenues at a time they are lacking.”
This policy brief is one in a series of briefs on raising revenues while preserving the state economy. A recent study by Scioto Analysis found that use of non-renewables was one of the biggest drags on the state economy throughout the 2010s, leading to a less sustainable state economy.
“If use of non-renewables had stayed from from 2009 to 2018, the economy would have been $5.2 billion larger at the end of the decade than it was,” said Moore.
This analysis was conducted by Masashi Hamano, MPP candidate at the University of California, Berkeley’s Goldman School of Public Policy. Writing and analytical support was provided by Rob Moore of Scioto Analysis and additional analytical support was provided by Isabel Clayter, Ashwin MB, and Cruz Eduardo Flores Vera of the University of California, Berkeley.