Why is gasoline so much more expensive in Europe than in the United States, and how does it change behavior?
"Gasoline prices in countries such as the United Kingdom and Norway can sometimes reach $5 per gallon because of high taxes. According to the Wall Street Journal, taxes in the United Kingdom account for 80 percent of the pump price, while the Europe-wide average is between 60 and 70 percent... If gasoline taxes in the United States had the same effect on driving that cigarette taxes have had on some smokers, higher gas prices could provide the motivation for some consumers to switch from, say, large SUVs to smaller more fuel-efficient cars."
Thanks to Chris Steins
Read the full story: EarthTalk: Why is gasoline more expensive in Europe than in the United States?
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