Fuel prices and well-being

According to a recent Gallup survey 32% of Americans would buy a more fuel-efficient car if gas prices kept rising. This pretty obvious finding highlights two facts that may not emerge in full clarity at first glance. First, the tax policy of the US government effectively encourages the use of bigger vehicles. Second, and more importantly, this is also a government policy that does not maximize its citizens well-being, in fact in many ways it reduces it. Let's look at the two issues in detail.

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