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 |