Parameter Values

Adjusted Pigovian Tax Using Low and High Range Values (cents/gallon)

Ramsey Tax Using Low and High Range Values (cents/gallon)

Base Case

Low

High

Low

High

Low

High

Initial fuel efficiency

20.46

18.4

22.4

142.8

172.1

4910.3

4907.2

Pollution damages, local air pollution (cents/mile)

2.34

0.47

11.7

123.6

327.5

4912.1

4887.1

Pollution damages, global climate change (cents/gallon)

7.03

0.23

28.1

151.2

178.7

4909.3

4906.2

External congestion cost (cents/mile)

4.4

1.4

7.4

102.7

212.8

4913.1

4903.6

External accident cost (cents/mile)

1.415

0.00002

2.83

131.9

183.8

4911.3

4905.7

Gasoline price elasticity

−0.23

−0.17

−0.4

164.3

168.2

6129.8

2338.3

Elasticity of VMT with respect to consumer fuel price

−0.633

−0.3

−1

185.8

94.41

4905.7

4914.2

VMT expenditure elasticity

−0.044

−0.1

0.1

155.4

166.1

5134.9

4239.2

Uncompensated labor supply elasticity

0.017

0

0.2

158.4

152.0

4908.6

4908.8

Compensated labor supply elasticity

0.997

0.5

1.2

217.7

150.0

1834.4

5686.0

Producer price of gasoline (cents/gallon)

280

200

300

161.45

157.3

3501.2

5260.4

Adjusted Pigovian tax (cents/gallon)

157.9

45.2

326.6

Ramsey tax (cents/gallon)

4908.5

2367.7

3087.9