I would need somebody with some auto economics knowhow to help me out on this, but it’s my impression that people in China think about all those 6 fees when they buy a car — and in fact, those fees seem to be some sort of disincentive for buying cars, because car consumers associate those fees with the lifecycle cost of owning the vehicle (as opposed to driving it).

Now, if that disincentive is taken away, and people feel a sense of ease about buying cars because the pressure is taken away from car ownership and put on car use, then I presume this will mean more car ownership.

Given that people who own cars seem to think “well, I spent this much on a car, how can I not use it regularly,” would this increased ownership not actually result in increased car use — and increased fuel use — and increased traffic/sprawl/obsesity/other bad things associated with personal vehicle ownership?

I’m kinda thinking that increased gas taxes are a good thing, and that work does need to be done to make non-discretionary driving more socially equitable. But I’m not convinced yet that a revenue-neutral gas tax is a sophisticated or environmentally-responsible enough strategy.

Comments?
[rjearley] at [icet.org.cn]