Reply #30: Huge gasoline taxes

[GliderGuider]

Electric cars are a chimera of a saviour. Their widespread adoption will result in more oil becoming available at lower prices for other sectors of the economy. Of course, to prevent those sectors from taking advantage of that convenience, countries can introduce hefty oil or carbon taxes. But, what if one country like China or the USA decides not to go along with the taxation idea? They outbid the good citizens of the world for the oil, fuel their cars and industries with it and keep their economy growing while the rest of us stagnate.

I'm sorry to be beating Cassandra's drum here, but the problem is global. Local, regional and national solutions have to be understood purely in terms of the benefit they offer to those regions. The global nature of the problem and the sovereignty of nations however means that any counry that wants to can opt out, and simply refuse to levy such a tax. I believe that any nation that thinks it's in their interest to opt out of a carbon tax will do so. The result is that few nations will sign up, because they don't want some other nation to be the one to opt out and thereby gain a strategic advantage.

I have yet to see a convincing argument why this would not happen, or a convincing strategy to prevent it.