Elasticity! Why cutting gas taxes won’t lower prices, but will fatten oil companies

When Clinton and McCain proposed cutting gas taxes, I asked my environmental economics students, “So how much do you think drivers will save?” The students diligently Googled the numbers. “Well,” said one, “the federal gas tax is 18.4 cents and the average state tax is 28.6 cents, so that’s 47 cents a gallon drivers will . . . → Read More: Elasticity! Why cutting gas taxes won’t lower prices, but will fatten oil companies